Note ban may continue to result in slowdown: SBI

The long-term impact of the note ban on the economy and the banking sector is uncertain, the State Bank of India (SBI) told institutional investors.

Demonetisation, announced last year, may continue to result in slowing down of the economy and adversely affect businesses in India, said country's largest lender SBI.
 
The long-term impact of the note ban on the economy and the banking sector is uncertain, the State Bank of India (SBI) told institutional investors.
 
There has been a rise in the CASA deposits of banks after the announcement of demonetisation. The sharp increase in the share of those deposits in aggregate deposits by 4.10 per cent to 39.30 per cent till February 2017 resulted in a reduction in the cost of aggregate deposits.
 
The bank may face more competition from commercial banks and other lenders, it said while highlighting the risks associated with demonetisation.
 
The government had banned Rs 500 and Rs 1,000 banknotes post November 8, 2016 and issued new Rs 500 and Rs 2,000 currency notes in exchange for the discontinued ones.
 
(Source: Agency) 

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