The Puzzle Faced by India’s Biggest Lender After Modi's Cash Ban
- India’s largest bank may retain 15%-40% of cash-ban deposits
- State Bank of India Chairman Bhattacharya comments at Davos
SBI Chair: Demonetization Has Been Very Difficult
This article is for subscribers only.
Analysts scratching their heads over the impact on India’s banks of the country’s move to ban high-value notes have every right to be puzzled, as estimates offered by the chairman of State Bank of India indicate.
The bank could retain anything from 15 percent to 40 percent of the deposit boost it received after the government withdrew about four-fifths of the banknotes in circulation in November, Arundhati Bhattacharya said in an interview Wednesday with Bloomberg Television’s Erik Schatzker. She was unable to give a precise estimate amid uncertainty about how much of that money came from Indian businesses as opposed to individuals.