Tuesday, October 6, 1998
Credibility at stake
The news that banks have under-estimated their bad loans by a huge Rs 3,800 crore severely undermines the credibility of bank managements. If the Reserve Bank of India (RBI) has been able to unearth such a high magnitude of under-reporting of NPAs, the question in every investor's mind will obviously be, "What is the extent of the NPAs which has evaded the RBI inspectors' notice?"
Brandishing brands does not boost profits
The value of brands to shareholders is beyond dispute. Take a look at the balance sheets of infotech companies, consumer goods corporates or even some firms selling commodities. Many of them have loudly proclaimed that their high stock prices are owing to brand value, while some stratospheric price-earnings multiples are clearly the result of the value which the market puts on brand ownership.
Fund-Bank meet
This year's Fund-Bank meet must grapple with the fear of a worldwide depression looming on the horizon. East Asia's meltdown could be contagious. Hopes that Japan would kick-start a revival are far from strong.
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