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Demonetization Effect May Continue to Hinder Economy Growth: SBI
June 15, 2017
India’s largest lender State Bank of India has expressed its concern that the impact of demonetization drive may continue to affect the economy negatively. The banning of old Rs. 500 and Rs. 1000 notes may have a long-term impact on the economy, although to an uncertain degree, it said to the investors ahead of the Rs. 15,000 crore share sale.
After the note-ban, there has been a major increase in the CASA deposits of the banks. According to RBI data, this jump in CASA deposits by 4.10% has caused the aggregate deposits costs to drop significantly and push the banks to reduce their term deposit rates.
