Recently, Switzerland’s judiciary set aside the decision of its central bank to completely strike down the value of Credit Suisse’s AT-1 bonds when it was acquired by UBS. Will it open the pandora’s box back home where a similar matter is up for consideration at the Supreme Court?
There have always been a lot of apprehensions on what incremental value add a foreign bank can bring to India, more so with the exit of biggies such as Citi and Deutsche from India’s retail terrain. Can Sumitomo Mitsui Banking Corporation help find an answer?
After the early wave of bank licenses rolled out in the 1990s, there has been a dearth of innovation, ideation, creation of fresh talent, and more importantly, capital into the Indian banking landscape has thinned in the recent years. This may change if India embraces serious foreign interest flowing into the banking sector
A new management would be a good catalyst for Yes Bank’s valuation, feel analysts
The short term potential return for putting capital into the bank isn’t lucrative.
The underwhelming performance of SBI’s AT1 bond issue is perhaps indicative of the new normal for subordinated bonds issued by banks and financial institutions. Banks may have to significantly increase the premium offered on these bonds, given the uncertainties associated with the loss absorption hierarchies
In its second innings, Yes Bank needs to learn all the lessons it can from the misdeeds of its past chief that decimated its balance sheet.