Sunday, October 30, 2011

Competition to intensify onsavings bank deregulation

...Banks in India held 26 per cent of their total deposits in the form of savings bank deposits as of June 2011. Assuming the savings bank deposit rates of these banks rise by 1 percentage point, profits before provisions and taxes will be lower by 9.3 per cent (based on FY-11 profits) if they do not pass on the deposit rate hikes to borrowers...

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