Just for study purpose.
In my analysis, though the income for banks are increasing steadily, what I see is, the inflation adjusted income + depreciation of INR. Its alarmingly down. ie., income for banks are going down. Why this happening. For example, I (bank) lend Rs.1,00,000 lakh in Year 2020, the CII (inflation) adjusted interest income is negative. If banks have to survive, they have to increase the lending rate (ie., interest rate). OR RBI have to print more money :-), which again depreciate money value + inflation.
Pls do your own analysis, and take calls appropriately.
Best wishes !!
In my analysis, though the income for banks are increasing steadily, what I see is, the inflation adjusted income + depreciation of INR. Its alarmingly down. ie., income for banks are going down. Why this happening. For example, I (bank) lend Rs.1,00,000 lakh in Year 2020, the CII (inflation) adjusted interest income is negative. If banks have to survive, they have to increase the lending rate (ie., interest rate). OR RBI have to print more money :-), which again depreciate money value + inflation.
Pls do your own analysis, and take calls appropriately.
Best wishes !!
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.