'Demonetisation' aftermath hits Indian banks before benefits
Demand for credit has plummeted while additional costs have been incurred to make the transition
Mumbai
INDIA'S shock move to abolish high-value banknotes was expected to deliver a windfall to lenders, and banks have indeed seen coffers swell after people deposited 12.4 trillion rupees (S$264.7 billion) in cash into the system.
But while banks may benefit in the longer term, so-called "demonetisation" has hit them hard in the immediate aftermath, with demand for credit plummeting and additional costs incurred to make the transition.
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