‘India’s Worthless Cash Turning Into Gold for State-Run Banks’

Spread the love

The government’s surprise move last month to invalidate old 500- and 1,000-rupee notes has driven millions to banks to deposit the currency or exchange them for new notes.

A Study Report, By: Harbans S Nagokay.

Jammu: 12/15/2016.

In a row; the 3rd i.e. Hat-trick been made with third such case of bank loot in south Kashmir post-demonetization. Yes! Now, the turn is of ‘The Jammu and Kashmir Bank branch Pulwama’which has been robbed this time and goons flee with another Rs 11 lakh, new currency notes. Unidentified armed men targeted Jammu and Kashmir Bank in south Kashmir’s Pulwama. On December 8, suspected militants robbed a bank in Chrar-e-Sharief area of central Kashmir’s Budgam district, decamping with nearly Rs 13 lakh cash.On November 25, the Jammu and Kashmir Police arrested 4 over ground workers of Lashkar-e-Taiba for looting Rs 14 lakh rupees from a branch of JK-Bank in Budgam.

On other side, having large deposits gives banks cheaper pool of funds to lend Millions of people have deposited old 500 and 1,000 rupee notes in banks since after note ban.Shares of India’s biggest state-run lenders are on a roll, thanks to a government ban on high-value notes that took almost four-fifths of the nation’s currency out of circulation.

Since the so-called demonetization policy was introduced on Nov. 8, State Bank of India and Bank of Baroda have surged at least 4 percent amid speculation they will benefit more than private-sector peers from the influx of deposits that followed the cash ban, according to IDBI Capital Market Services Ltd. Private-sector rivals HDFC Bank Ltd. and ICICI Bank Ltd. dropped 6 percent and 8 percent, respectively.

Then, Coal India Q2 Net Slumps 77% on Higher Expenses, Decline In Sales
Ruchi Soya Q2 Net Profit Nosedives 78% To Rs. 27 CroreSale of its branded food products fell to Rs. 2,195.40 crore as compared to Rs. 2,240.96 crore in the said period.Ruchi Soya Industries Ltd on Thursday posted a steep fall of 78 per cent in its standalone net profit to Rs. 26.74 crore for the second quarter ended September 30, on poor sales.The company had clocked a net profit of Rs. 121.14 crore in the year-ago period, it said in a BSE filing.The firm’s net income also declined to Rs. 5,127.95 crore during the quarter under review as against Rs. 5,736.20 crore in the July-September period a year ago.  And, now the sale of its branded food products fell to Rs. 2,195.40 crore as compared to Rs. 2,240.96 crore in the said period.The revenue showed a decline in almost all business segments — edible oils, vanaspati, food products, wind turbine power generation and others. In fact, it incurred losses in seed extraction segment during the quarter, it said.

Yet, the government’s surprise move last month to invalidate old 500- and 1,000-rupee notes has driven millions of Indians to banks to deposit the currency or exchange them for new denominations. Lenders had taken in 12.4 trillion rupees ($183.6 billion) of deposits as of Dec. 10, out of the 15.6 trillion rupees of notes canceled, central bank figures show.  “State-run banks are getting to generate a large float of low-cost current and saving account deposits after demonetization,” A.K. Prabhakar, head of research at IDBI Capital in Mumbai, said by phone. Having a large base of so-called CASA deposits, which typically carry lower interest rates, gives banks a cheaper pool of funds from which to lend, bolstering their interest margins. About 43 percent of State Bank of India’s deposits were in CASA accounts as of Sept. 30, more than HDFC Bank’s 40 percent and ICICI Bank’s average of 41.5 percent for the September quarter, filings show.

Within all above news reports; successions of arrests with new currency is otherwise becoming like a common issue then, agencies are on high alert to grab bankers & money launderers involved there-in. As again two businessmen with Rs. 35 lakh rupees were caught in Jaipur with new currency notes while they were exchanging old notes.Following a tip off, a team of Rajasthan police special operation group (SOG) caught Sunil Gupta and Priyanshu Gupta in Vidhyadharnagar area and recovered around Rs. 36 lakhs last night.

Nonetheless; Days before the New Year celebrations, Ahmedabad Rural police have seized Indian made foreign liquor (IMFL) worth Rs 2.87 lakh from Fakirwas of Mandal.The liquor bottles included a new brand of IMFL which still unknown in the police circles. The liquor belonged to a historysheeter bootlegger, MustufaKachot of Mandal.

Then again; shares of liquor makers such as Globus Spirits, Pincon Spirit, RadicoKhaitan and United Spirits fell as much as 7 per cent after the Supreme Court ordered closure of liquor shops along the national and state highways.Indian made foreign liquor maker Globus Spirits fell as much as 6.85 per cent to Rs. 90.35. It was followed by Pincon Spirit (fell 3.14 per cent), RadicoKhaitan (fell 3.11 per cent) and United Spirits (fell 1.6 per cent) after Supreme Court ordered closure of liquor shops along highways.

 

Recommended For You

About the Author: Editorjknews

Facebook