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Note ban Cripples Lending in the Country
January 13, 2017
The short-term effects of demonetisation have turned out to be nothing but disappointing. Banks have been working towards facilitating exchange of old currency notes while struggling with the short supply of the newly-minted notes.
While the banks and people are preoccupied with dealing with the discontinued currency, the immediate effect has been on demand for loans of all types. A popular brokerage firm has predicted that the loan growth in banking sector will fall to 6% in the period post demonetisation, up to March 2017. This will be the lowest as compared to the figures of the last two decades.
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