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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The CEO may have turned around a bank that was in the grips of corruption at the grassroots, but can he make it one of India’s top five private banks?
Federal Bank chief executive Shyam Srinivasan isn’t happy. Since January, the bank’s shares may have soared 53%, almost 3x the growth in the Nifty Private Bank index. But he wants more.
“I still think we have not been rewarded as well as we should for the performance,” Srinivasan recently told The Economic Times.
The CEO of the Aluva-based bank has a point. With Srinivasan at the helm for the past 12 years, the private sector lender, once plagued by grassroots-level corruption and unionism, has grown its deposits 1.5x and advances 1.6x vis-a-vis the industry.
However, during the same period, …
The acquisition of IDBI Bank puts his Fairfax smack dab in the middle of the RBI’s rules on bank ownership. It must now decide whether to sell CSB Bank or merge the two lenders, neither of which will be easy.
Lenders stand to gain a lot more than borrowers in the current challenging market environment
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
