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Business Today

Business Today 21-Mar-21

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A leading business magazine read by the business leaders for staying ahead and managing challenges that comes right away in the ever changing world of business.

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Country:
India
Language:
English
Publisher:
Living Media India Limited
Frequency:
Biweekly
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26 Issues

in this issue

2 min.
banking’s soul-search

The jury is out on whether the bank of the future will be a bank as we know it or the business of banking would be hijacked by a tech firm like WhatsApp, Google or Apple! After all, banking today is more about technology than about handling money. Curiously, even the latter is managed — by technology. Both sides are readying their armoury and neither is short on ambition. Banks are adopting technology at an unprecedented pace and tech firms have already made forays into payments. That provides them the customer data to cross-sell other banking and finance products to the customer in the future — anything from personal and auto loans to insurance and pension products. Whether banks will pivot to resemble tech firms or tech firms will resemble banks…

1 min.
pledging shares

INCREASE IN HOLDINGS Pledged shares as % of total promoter holding Number of companies with 25-100% pledged shares ₹1.8 Lakh Crore Value of promoter pledged holdings at the end of Dec 2020, about 1.04 per cent of the total market cap of BSE-500 companies WHO PLEDGED HOW MUCH Companies with highest pledged holdings by promoters as percentage of their holdings HIGHEST PLEDGE IN OVERALL HOLDINGS Companies with highest pledged holdings by promoters as a proportion of total shares COMPANIES IN WHICH PROMOTERS INCREASED THEIR PLEDGED HOLDINGS % of promoter pledged holding (Change in %) TOP 10 COMPANIES IN WHICH PROMOTERS REDUCED THEIR PLEDGED HOLDINGS % of promoter pledged holding (Change in %)…

9 min.
the epic shift

The numbers are staggering. In the next three years, the proposed Development Finance Institution (DFI) could have a lending portfolio of ₹ 5 lakh crore, while the asset reconstruction company (ARC) for bad loans would have acquired ₹ 3-4 lakh crore stressed loans from banks, releasing huge capital for banking sector expansion. That’s not all. We might also get a few more banks, possibly a big corporate-backed bank or a large NBFC converting itself into a bank. Then there is acceleration of technology adoption by banks, NBFCs and Fintechs. The government, too, has again taken up the pending proposals for privatisation of public sector banks (PSBs). The ₹180 lakh crore banking industry’s ‘great reset’ is well in progress after the Covid-19 outbreak that made banks trigger business continuity plans and raise…

7 min.
turnaround strategy

When 60-year-old Sandeep Bakhshi was pulled out from ICICI Prudential in early 2018 and asked to head ICICI Bank, the country’s second-largest private sector bank was facing multiple challenges. One was instability due to the exit of Chanda Kochhar. Second was high level of non-performing assets or NPAs. Bakhshi, who grew up in a defence family, hopping from one school to another, was quick to adapt to the situation. In a little over two years, he has delivered results. Return on assets has jumped from 0.43 per cent to 1.70 per cent. Net non-performing assets (NPAs) are down from 3.65 per cent to 0.63 per cent with substantial NPA provisioning. Capital adequacy is close to 20 per cent as against 9 per cent mandated by the Reserve Bank of India. The…

6 min.
game changer

Adecade ago, Aditya Puri, the former MD of HDFC Bank, tried to influence his daughter Amrita Puri to join advertising against her desire to pursue acting. Though he managed to convince her, she did not enjoy advertising and opted for acting. Puri’s daughter, who acted in movies like Kai Po Che and Aisha is making a career in Bollywood and serials. Today, Aditya Puri brims with pride over her achievements. This has parallels with Puri’s life. In a banking career spanning 40 years, he never allowed himself to be influenced by anyone. Puri, who built HDFC Bank from scratch, opted to graduate in Commerce, though his father, an Indian Air Force officer, wanted him to study science. After completing his chartered accountancy in Delhi, he shifted to Mumbai in 1975 to…

7 min.
adapting to change

1.23% Net NPA ratio in Q3 FY21, down 142 bps year-on-year 7.6% Year-on-year credit growth in Q3 FY21 A week ago, Dinesh Kumar Khara, 59, the new Chairman of India’s largest bank, State Bank of India (SBI), had said the ‘elephant is ready to dance’. Khara’s optimism shows up in the bank’s stock market performance where its share price doubled since he took charge in October 2020. The reasons are a greater control over asset quality deterioration, robust base of low-cost deposits, retail banking acceleration in mortgages and institutional setup for housing loans gone bad and financing long-term infrastructure projects. Also, the bank’s subsidiaries are already firing on all cylinders. Be it SBI Cards or SBI Life, the higher market valuations indicate the future scalingup of these businesses. In the BT-KPMG study of India’s…