Summary Points: When RBI cuts CRR what it means for banks. A 0.5% CRR cut freed up Rs.1.16 lakh crore for banks in Dec’24. Post CRR cut banks can lend more, boosting their profits. PSU banks might benefit more than private ones. Bank stocks rose initially but could falter later. Economy gets a push if…
Today, I want to talk about something that might seem a bit technical, but it’s actually a really important indicator of the health of our economy. I’m referring to the loan growth data from banks. You might be thinking, “Loan growth? What’s that got to do with me?” Well, imagine the economy as a big engine. Banks…
These days we often hear the phrase called “taking a haircut”. What does it mean, and how it effects a common man? In simple language, taking a haircut means “agreeing to settle a deal for a loss”. Why banks would agree to accept a loss making deal? To understand this, one must first understand what…
