Wednesday, December 10, 2008

India Banks: RBI directive destroys transparency

(My Original Blog Post:
Lee's Dhaba for more

As I have said in two earlier posts:

  1. India Banks: Slippery slope ahead

  2. India Economy: Policy Rate Cuts

the RBI acquisience to industry demands for accounting gimmicks has made valuation of Banks an impossible short term task.  Realty problems have been swept under the rug...So, I am rescinding my earlier view that Banks in India are offering good value.

It may be the case that Banks offer value, but the RBI move a market fraught with danger and zero profit visibility I hoped we would be upfront with the problems.

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