'Demonetisation' aftermath hits Indian banks before benefits

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.