Description

In the last one and half years banking industry have seen turmoil in its core and augmented business segments. After 2011, suddenly the rosy scenario for the banks has reversed. Call money rate is shooting on a regular basis to the record high level of history. Net interest spread for many banks have gone down sharply. On top of that government is burdening the balance sheet of the banks by binding the banks to take low yielding treasury bills and bonds.