While the Marutis start building the Volkswagen and the East looks for ansers in a west dominates model, Hero intends to get out of the ball park even after its promoters buy out the world leader in autos, Honda later this week. As with other auto scoops we tweeted and the myriad phases of silence we observed as Hero Munjals decided to delineate to the press and renegotiate terms with Honda over a year, we also tweeted industry health and international media did come in to propose that the next stage of reforms be not because of RTi but for them. The model inherently flawed may however find big bang sponsors in India's hinterlands in the East and the slums of the West equanimably. 

However, given that paying customers with "kitna deti hai" on their mind have not favored the arcane junk from Fords and GM nor profferred the market to them yet, we may still be looking at a mirage in an exploding auto industry following India's telecom boom especially for standalone comer uppers from the west :D Marketing in the auto industry has however becoem a hard act to follow for the Pawan Munjals and Brand Ambassador Priyanka Chopra, unless the advertising satraps can get more "vision philosophers" like us at the marketing ends of the companies which unfortunately seems hard to come buy for the industry. I am sure many in the IIM 1% and others pine for a cleanan break from the consulting and the investment banking picking jobs for simple ambitions to launch brands but remain stuck with GM India's with ambitiobns of 15000 cars a month and Itlaion stallions with FRench comics running around from one JV partner to another. The domestic producers on the other end also remain as always at their wits end with capacity completely utilised and fuel costs to become unbearable even for the forever upwardly mobile young population with greater disposable incomes every day. Somehow, it is the carkmakers' doing. 

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Well Indian newspapers deserve some direct lead in their ears too. in "next gen ishtyle" However DNA quality has disappointed. I am just waiting for the HT to launch in Bangalore as well. The HT come back was the highlight of the Indian media story in the previous decade. Wish them "bon printemps"

There's life beyond cricket! !?!?!?

 

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Well Indian newspapers deserve some direct lead in their ears too. in "next gen ishtyle" However DNA quality has disappointed. I am just waiting for the HT to launch in Bangalore as well. The HT come back was the highlight of the Indian media story in the previous decade. Wish them "bon printemps"

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The only business TV you had was CNBC TV18 for a ten long years, then there was "PROFIT". Bloomberg chose to launch its information rich slice in 2008 ( the magical year for information oversight!) even when Thomson Reuters stayed online ( the insider has really got  the global investment banking markets content exclusively for you) Then the babes of boribundur, the ETNOW.TV was born to support Bennett Coleman's fight to keep Indian home turf with its million strong daily readership of the ET giving it the go ahead for the TV network to show us the way.

ET content of course syndicated with Reuters, finds the nooks and crannies every time to get to a rich deep slice and with the NOW boutique choosing apparently off the shelf or easy peasy technology ( dont ask me that, I can just see it is pretty much untechnology) For the nay sayers like me, check today's pieces on Fraud and cyber crime - no one else has even bothered to tell us the facts white reports have known for a decade, then relying on any other sources for info on indian backwaters and mid cap "multi-baggers" is also "unlikely to pay". 

However, this note is to find its karma only if ET realises a better team to hold up its glory. While Ashoo has conveniently been lost to Bloomberg which can absorb more of this upstart, the script writing and the die hard, trying to be fun, anchor dharma subscribers, i.e. the posse of untrained journalists getting a speak even in their role as anchors on the channel are falling into a rut with officious, much on the brink witticisms that certainly won't help up coming business leaders in a hangover suite, much less die hard indian middle class subscribers of free forever information that seem to be the rest of this next generation

In short abnd without any insult intended or delivered, i was just saying that you guys could really cut the edges from your speech when you go live , Delivering shockers does not seem will be good business to me if you forget to be suave and sophisticated and that comes from not speaking like a Van Damme movie bit player. 

 

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Bank Results Season: HDFC Bank shines the beacon for the industry

An apology to the regular readers and visitors for reference material. Till business conditions improve for us, small power fluctuations get a little loud in our system and cause th eloss of time and energy, that's why the once in a while resort to fun for the nalysis ( dare i say on the same page here as well) 

Well the linkages to the above complex sentence formation may be tenuioous and a direct subtle or indirect explanation for them may only put you off. Trust me. So, back to the banking industry report expected here. HDFC Bank as suspected, went the mile keeping NIMs above 4% at 4.2% shaming european and American banks with various implications and aspersions unknowingly cast over the years as the few of us concentrating on reform als o found much to our chagrin.

Earlier JV partners now have an out in India and with 16% CAR HDFC Bank has proved its own processes stand tall in gathering and underwriting credit where ICICI Bank feared and eventually with a resounding thud, fell! However HDFC Bank customers  in retail and small town / small business India may not be readily expandfing franchises and in that keeping corporate credit growing and useful is also creditable for the true new "behemoth" and fittingly IDBI and SBI stand tall with it.

Unnerving, esp as HDFC Bank manages urban stakeholders in the new economy with a decidedly metropolitan lifestyle with rural and semi urban customers , really opening your eyes to financial inclusion without reducing it to bare bones mobile banking ( which as an alternate is also required ) for the eventual financial inclusion of the 200 million unbanked households in the country

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..while the big star HDFC Bank waits for the Republic Day parade to get over 

 

 

News extracted from Business Standard : State sector lender IDBI Bank today reported a jump of 58.13 per cent in its net profit at Rs 454.08 crore for the third quarter ended December 31, 2010.

It had a net profit of Rs 287.15 crore during the corresponding quarter of last fiscal, IDBI Bank said in a filing to the Bombay Stock Exchange.

 

The bank also reported an increase of 16.38 per cent in its total income during the third quarter at Rs 5,159.54 crore as against Rs 4,433.40 crore in the year-ago period, it added. IDBI Bank's total business grew by over 12 per cent to Rs 2,84,729 crore during the quarter under review from Rs 2,54,075 crore in the corresponding period of 2009-10. Its advances went up by nearly 21 per cent to Rs 1,34,491 crore during the period under review from Rs 1,11,278 crore in the third quarter of last fiscal.

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ICICI Bank is caught in a bind with its credit book refusing to grow and its tag of a behemoth, much unwarranted and frequently denied by the new senior management, falling ill on its shoulders. A pathetic turn on single digit growth in advances (low double digits) and a CAR now 19.98% despite the current crisis, I could almost count that as a fatal flaw with a large bank, NIMs obviously thus remain a concern at 2.8% and the Gross NPAs refuse to come don now still 4.75%. 

 

Having talked of the albatross, one must come back to Alexandria, where the behemoth of this subcontinent created another monument in Alabaster ( as preferred by Alexander the Great and family) The NIMs were a concern here as well but improving more steadily and NPAs next to none giving a fillip to its vote of confidence on the Economy's growth in credit (Quality Credit) SBI NII was up 43% to $2 billion (INR 9000 Crs) and Op Profits up 46% to $1.5 billion. Size does matter but only when its SBI and yoy NIM has improved from 2.56% to 3.40 % Get it

ICICI Bank grew better in profits seemingly ( on as  smaller base) and also gets a reprieve on the 70% PCR clause where SBI has also caught up pretty fast this quarter coming to 66% over 56% last year and against a final target of 70%. Its NPAT grew 14% after trebling provisions to $500 million (INR 2000 Crores) 

 

India Earnings Season (Bank results season December 2010)

 

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India's Mid Cap banks story lists continue to get bigger and bigger while mainstream mid-caps like Axis and YEs will continue to take their time to reach the big league. 

 

Things that went well for YES:

Profits up from 130 to 190 Crors ($40 million) year on year) 

NPAs low at 0.23% Gross NPAs less at 0.27% 

Advances grew 66%

 

Things that continue to challenge the professional management of the "bank"

NIMs of 2.8% is still below par, consequent to CASA only growing incrementally thought he grwth nos in CASA astound every time

 

Bank Results season: More Quarterly updates (Kotak BANK December 2010) 

Kotak comes out with results in the mean time and as mentioned here, growth is capped, NPAT growing less than 20% 

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Results season started with a bang with T major Infosys dipping things for the stock markets and after the ADAG Consent agreeemenbt much misunderstood by the press, we also have L&T Finance struggling to formulate its outlook for a Banking Licence while postponing its $333 million IPO. Though pencil results from AXis Bank are out and outperformance has been maintained, it does notlook like an earth shaking quarter for the indian banking fraternity, used as we are to 30% + y-o-y and 10% Q-oQ growth. Most of our earlier analysis remains valid , noe of it ever intended to be only a quarterly results update. But we'll still strive to make time to cover the growth leaders and any new laggards. 

 

On the calendar, new banks and a lot of finance companies that do not need to be banks esp as they are IFCs deigned by RBI for better lending norms, a lot of new wood in leaders finally clearing the air for a rosy future and smaller banks like Indusind which had a fun 2010 and a wonderful December quarter with profits doubling to $33 million from less than $20 million in the year ago quarter. Axis reported a topline of $866mn about to join the $1bln a quarter club, with $245 mln in Fee based income and $400 mln in Net Interest Income albeit CASA remained an abysmal 36% overall

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