Until We See These Changes, Analysing the Results of Public Sector Banks Make No Sense
Banks accept deposits. It is depositors’ money that is being lent. But, well, the depositor puts money in a bank in good faith. If banks lose a lot of money, capital adequacy requirements are violated. If it is a private bank, it can be rescued through a change of ownership. If it’s a public sector bank (PSB), you and I are asked to put in money. (Frankly, why do PSBs need any capital? Their...
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