News Tidbits

  • Thread starter Thread starter blr_p
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Excellent!

I see another huge problem that is going to come!

People are depositing huge money in bank accounts.

So banks will have huge amount of sudden surge in money.

Now they can not pay interest out of pockets - so they will give the money to businesses.

And chances of defaulters will increase!!

And hence more write-offs or more NPA!
 
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Banks are always looking to increase the amount of cash they have. If people deposit the money they've hoarded in banks, it can only be good for the banks. Banks earn money from the loans they give out, there's a fifty-fifty chance of any loan becoming NPA. There's little that can be done about it besides ensuring that there's sufficient collateral for the loan being given out.

Also, from what I know, banks don't give out loans from the amounts in savings accounts of people. It is much too liquid.

There are also other advantages of banks infusing money in market. It leads to a higher growth rate (downside being increased inflation).
 
^^^ Saw above news on TV yesterday. 2-3 people were recording it on mobile, but none of idiots helped poor lady!
 
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