ROADSHOWS: Communications / Media / Software - Andrew Freedman & Felix Wang /Hedgeye   •   London 10 - 11 Nov   03 - 11 Nov 26       Behavioural Finance, Portfolio Strategy & Quant - Jim Rocchio /Kailash Capital Research   •   London   05 - 05 Nov 26       US, European and Asian SELL / SHORT Ideas - Robert Prather /Vision Research   •     10 Nov - 15 Dec 26      
Filters

The Cut

Fortnightly publication highlighting latest insights from IRF providers

Company Research

Financials

Report by Hemindra Hazari

Sintex loan fiasco - is RBL’s acting CEO fit to be a banker, let alone run a bank? Approving a loan to a company which has a debt-equity of 10.5:1 and was already overdue on a loan to Deutsche Bank was either a case of extreme incompetence or ‘evergreening’. It also reflects extremely poorly on the independent directors in the credit and risk committees. The regulator must now investigate any other poor quality loans disbursed by the bank. A major implication of this story is that it is unlikely that interim CEO, Rajeev Ahuja, will be selected as permanent CEO; while an external appointment may disrupt the continuity the market was expecting.

Edition 130 - 04 Mar 22