Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/dbs-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:22:1" rel="noopener">DBS Group Holdings (DBS SP)</a> will take over a failing bank in India. DBS Bank India may inject capital into <a href="https://www.smartkarma.com/entities/lakshmi-vilas-bank-ltd" target="_blank" data-smartkarma-citation="entities:17552:1" rel="noopener">Lakshmi Vilas Bank (LVB IN)</a>, before merging the latter into the former. There is no talk about what DBS will gain in return for this service, but we imagine it will be substantial and that there will be seem back-stop on credit deterioration. We do not view this recapitalization as onerous for DBS, where that is the typical knee-jerk reaction. In fact, this can be incredibly positive for DBS in terms of growth longer term.

DBS Group Holdings (DBS SP) will take over a failing bank in India. DBS Bank India may inject capital into Lakshmi Vilas Bank (LVB IN), before merging the latter into the former. There is no talk about what DBS will gain in return for this service, but we imagine it will be substantial and that there will be seem back-stop on credit deterioration. We do not view this recapitalization as onerous for DBS, where that is the typical knee-jerk reaction. In fact, this can be incredibly positive for DBS in terms of growth longer term. 

India Financials

Saumya Agarwal

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Corrigenda: There is an error in this Insight. Please note the change.
Correction: LVB’s paid-up share capital, reserves and surplus will be written off and the shares and debentures shall stand de-listed. Therefore, the pro-forma net worth will be Rs 85 Bn instead of the Rs 92 Bn mentioned in the Insight.
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In what appears to be a remarkable life-saving move for the distressed Lakshmi Vilas Bank, the RBI announced a draft scheme for the merger of Lakshmi Vilas Bank (LVB) with DBS India. RBI also placed the troubled bank under Moratorium effective immediately, for one month, till Dec 16,2020.
LVB had been desperately scouting for a buyer, to raise capital, after posting losses for 3 consecutive years which saw its net worth erode markedly. However, LVB’s earlier proposal to merge with India bulls Housing Finance was rejected by the RBI in 2019 and its recent talks with Clix Capital turned out to be inconclusive.


Corrigenda: There is an error in this Insight. Please note the change.
Correction: LVB’s paid-up share capital, reserves and surplus will be written off and the shares and debentures shall stand de-listed. Therefore, the pro-forma net worth will be Rs 85 Bn instead of the Rs 92 Bn mentioned in the Insight.


In what appears to be a remarkable life-saving move for the distressed Lakshmi Vilas Bank, the RBI announced a draft scheme for the merger of Lakshmi Vilas Bank (LVB) with DBS India. RBI also placed the troubled bank under Moratorium effective immediately, for one month, till Dec 16,2020.
LVB had been desperately scouting for a buyer, to raise capital, after posting losses for 3 consecutive years which saw its net worth erode markedly. However, LVB’s earlier proposal to merge with India bulls Housing Finance was rejected by the RBI in 2019 and its recent talks with Clix Capital turned out to be inconclusive.

Lakshmi Vilas Bank Gets a Mighty Savior- To Be Merged with DBS Bank India

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

RBL Bank plans to raise between US$150-200m later this year by selling a mix of primary and secondary shares. In this insight, we have looked at the company's past financial performance, along with its return profile in order to benchmark it versus other listed players. RBL is similar to other listed old age private sector banks in terms of asset size and returns and the deal will probably need to come in at a discount to this group for it to do well.

RBL Bank plans to raise between US$150-200m later this year by selling a mix of primary and secondary shares. In this insight, we have looked at the company's past financial performance, along with its return profile in order to benchmark it versus other listed players. RBL is similar to other listed old age private sector banks in terms of asset size and returns and the deal will probably need to come in at a discount to this group for it to do well.

RBL Bank Pre-IPO Review - Impressive Asset Growth but Return Ratios Lagging

India

Lakshmi Vilas Bank was an Indian private sector bank providing commercial and retail banking services, including savings and current accounts, various types of deposits, and loans such as home, personal vehicle, education, and loans against property. It also offered financial services, insurance, and wealth management. The bank was founded in 1926 in Karur, Tamil Nadu, and its headquarters were located in Chennai, India.

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Lakshmi Vilas Bank (LVB IN)

DBS – Fast Track Entry To India

DBS Bank India may inject capital into Lakshmi Vilas Bank, before merging it into its own business. DBS Group will gain substantial branches, fast...

Daniel Tabbush

Lakshmi Vilas Bank Gets a Mighty Savior- To Be Merged with DBS Bank India

In a remarkable move, the RBI announced a draft scheme for the merger of Lakshmi Vilas Bank with DBS India. It also placed the troubled bank under...

Saumya Agarwal

RBL Bank Pre-IPO Review - Impressive Asset Growth but Return Ratios Lagging

RBL Bank plans to raise between US$150-200m later this year by selling a mix of primary and secondary shares. In this insight, we have looked at...

Sumeet Singh

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