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The global index provider could remove sinking companies, brokers say, but is likely to add ICICI Prudential Life Insurance and Siemens this week.
HDFC Bank’s market value surged by $21 billion over past year. Among 25 biggest lenders globally, no other stock commands a higher price relative to earnings.
Indian taxpayers have already shouldered burden of a Rs 14 lakh crore bad loan problem at conventional banks. They can’t foot the bill again.
Lakshmi Vilas Bank was recently placed under Prompt Corrective Action due to high level of bad loans & negative return on assets for two consecutive years.
Yes Bank is at the epicenter of rising stress in India’s credit markets, where last year's shock defaults by a major infrastructure lender led to strains at other shadow banks.
Shadow lender Indiabulls claimed advocate Prashant Bhushan made allegations of financial irregularities against the company without verifying facts.
Indiabulls’ shares plunged after the Delhi High Court admitted a plea against the shadow lender and RBI placed restrictions on its acquisition target, Lakshmi Vilas Bank.
Only 54 big lenders are monitored by RBI & investors are now trying to figure out whether they pose new threat to banking system hobbled by bad loans.
Indiabulls is also in legal hot water after the Delhi High Court agreed to hear a petition to investigate the company over allegations that it gave out “dubious loans”.
The merger is crucial for shadow lender Indiabulls, which is seeking to diversify its asset base, while Lakshmi Vilas bank needs to raise capital to meet regulatory norms.
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