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Transfin. Podcast E4: Unfriend, Non-essential, A Sitting Duck

Professor of Financial Economics and Part-time Value Investor, Transfin.
Sep 27, 2018 11:59 AM 2 min read


We like to talk Business and Finance. Figured we should do it for a living.  


Today we chat on:


The Facebook-Instagram Heartburn

Kevin Systrom and Mike Krieger, co-founders of the photo sharing app Instagram, owned by Facebook, stepped down as chief executive officer and chief technical officer, releasing a statement on the company’s website. Their exit came after reports of increasing clashes with Facebook’s Mark Zuckerberg. Interestingly, on the same day, Ajit Mohan, Hotstar CEO, was appointed as Managing Director and Vice-President, Facebook India, indicative of Facebook's interest in video-content. This week's discussion is around some new friends and some not any more.

How Essential is Government's List of 'Non-essential imports'?
Couple of days ago, top officials in India came together to announce a Five-Point Action Plan to stabilise the Indian Economy, stressing, on back of the falling Rupee and increasing fuel prices. An important part of the Plan was to reduce "non-essential" imports to balance the trade deficit. Who gets to decide what's essential and what's not! Well, the government has come out with a list of 19 items on which custom duty is to be hiked. 

How is RBI deciding the fate of Indian Bank CEOs?
RBI is cracking the whip on Indian Bank CEOs, albeit selectively. Starting with Shikha Sharma, Axis Bank CEO, and now Rana Kapoor, YES Bank promoter and CEO. After last week's announcement of RBI limiting Rana Kapoor's tenure, YES Bank’s shares dropped by 34%. No surprises there considering that Mr. Kapoor is a 20% shareholder in a ‘not so much’ widely-held stock. However, what remains a mystery is the fact that while ICICI/Ms Kochhar, demonstrating the slowest growth, the highest NPAs, and a much more questionable reputation have gone scot-free, YES Bank, which has shown best-in-class growth and returns and the second lowest proportion of NPAs has been shown the door. What criterion is the Central Bank following in deciding the fate of the Indian Bank CEOs?


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