The most important thing about a regulator is he speaks in the language of the MOST powerful player. Period. So if it is RBI he will speak in the same tone as State Bank of India. If it is Insurance, it will sound like LIC and in case of mutual funds it used to be […]
It is not easy being in the retail business. And surely not so for arrogant old economy companies who have sold in the control regime economy. So what should you do if you get bad service? Go viral. Yes the Indian net penetration is no patch on the US as a %age of penetration, but […]
When the economy is not doing well or when a company is not doing well, there is tremendous pressure to reduce costs. The accountants are normally the worst persons to come up with suggestions to reduce costs. They will find simple, stupid costs and act like they have done something great. The normal suggestions are: […]
RBI is the banking regulator and obviously it has a role in development of the banking industry, right? Well, over the last so many years what is the penetration of banking in India? Well about 6-8% of the country’s population has some access to banking. Why we do not have banks with EXCLUSIVE mandate to […]
PSU companies make profits only if: – they have a monopoly – price is controlled or quantity is regulated – the market is very unfair – there is so much profit that all companies make profit. PSU banks fall in the 4th category! The government owns about 25 banks – and it has no reason […]
This is a question that is always difficult to answer. The best thing to do is to fully deflect the question! However with a low IQ it is possible to attempt an answer to this! Even though I do belong to the Peter Lynch gang of saying ‘If you have spent 10 minutes thinking or […]
If you are old enough to remember what is LBO it means you were born in the 1950s or 60s! LBO is a short form of Leveraged By Out. Here a set of employees would get together and decide to buy out the shareholders. Then they would take the company public and make their $ […]