Here's how Uday Kotak is reading Credit Suisse's discounted sale to UBS

Credit Suisse's sale to UBS at a discount of 60% along with a write-off of $17 billion worth AT1 bonds is a signal for all bankers and stakeholders as to what happens when the risk-return matrix is overtaken by obsession with size, billionaire industrialist Uday Kotak said in a tweet.

"Credit Suisse sold to UBS for 3 bn $. 60% discount to stock value at Friday closing. 600 bn $ balance sheet sold for 3 bn $ equity value. 17 bn $ of AT1 bonds written off. A signal for all bankers and stakeholders, when risk-return matrix is overtaken by obsession with size," Kotak tweeted on Monday.



UBS has agreed to buy rival Swiss bank Credit Suisse for 3 billion Swiss francs ($3.23 billion) and agreed to assume up to $5.4 billion in losses, in a shotgun merger engineered by Swiss authorities to avoid further market-shaking turmoil in global banking, Reuters reported.

UBS Chairman Colm Kelleher said the bank wants to keep Credit Suisse's Swiss unit, speaking at a news conference, announcing the merger between Switzerland's two biggest banks on Sunday. "It is a fine asset that we are very determined to keep and hopefully service their customers and clients as efficiently as Credit Suisse has done," Kelleher said.

The deal includes 100 billion Swiss francs ($108 billion) in liquidity assistance for UBS and Credit Suisse from the Swiss central bank, the report said.

To enable UBS to take over Credit Suisse, the federal government is providing a loss guarantee of a maximum of 9 billion Swiss francs for a clearly defined part of the portfolio, this report said, quoting a government statement.

The European Central Bank said on Sunday a Swiss rescue of Credit Suisse was "instrumental" for restoring calm in financial markets but it remained ready to support eurozone banks with loans if needed, the report said.
"Even as the global turmoil continues in financial markets, the macro factors are turning better for India. Current account deficit looks below 2.5% Fy 23, and going below 2% in Fy 24. Lower oil helps. If we walk our talk and navigate well, India can stand out in this turbulence," Kotak had Tweeted on Thursday.

The Chief Executive Officer (CEO) last week also tweeted about the situation of the Indian banking system.

"Even as the global turmoil continues in financial markets, the macro factors are turning better for India. Current account deficit looks below 2.5% Fy 23, and going below 2% in Fy 24. Lower oil helps. If we walk our talk and navigate well, India can stand out in this turbulence," Kotak had Tweeted on Thursday.

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