From Yes Bank's road to recovery to a masterclass on building profitable unicorns, here are our top reads of the week
1) Wartime CEO
Rising bad loans on a company’s balance sheet are always poor optics. They not only become non-earning assets for the bank and reduce the interest income, thus impacting return on assets and profitability, but they also reduce the confidence that stakeholders and potential investors will have in the bank. Prashant Kumar inherited one such entity: Yes Bank. He began work when the GNPAs of the bank had surged to 16.8 percent in March 2020. The bank is out of the woods but the challenge of a steep trek to the top awaits. Read more
2) Kingdom built on dad's advice
Bipin Hadvani's father used to run a small namkeen shop in Rajkot, Gujarat. Hadvani Jr was always fascinated by how his father operated and the snacks business, in general. He says his father unknowingly groomed him to be an entrepreneur. In 1994, the second-generation businessman received Rs 4,500 and two business mantras from his father that have played a big role in making Hadvani's Gopal Snacks a Rs 1,300 crore regional goliath. Read more
3) Risky business
As credit has exploded in the last decade the number of consumer interactions has increased manifold. In FY22 alone personal loans rose 22.4 percent by value to Rs 792,400 crore, according to data by CRIF High Mark, a credit bureau. There were 58 million active loan accounts. Each of them has to be managed and monitored for signs of stress. Lenders have seen old collection methods failing. Enter Spocto, an AI-enabled platform that allows financial institutions to assess the risk profiles of their customers. Read more