Indian banks in better shape than global peers

by Dave

With household savings rates in India 22% and rising, less than 10% of Indian population in the formal banking sector, and 200 million projected to be added to the workforce in the next 10 years, prospects for investing in the Indian banking sector for the long-term are very attractive.
Finance -News By Industry-News-The Economic Times

Indian banks appear to be headed for better profits this quarter in sharp contrast to banks in the West which are issuing profit warnings amidst massive writedowns. Most banks in India are likely to show better profits for the quarter ending September compared with the previous quarter (June 2008).

Profits are likely to be higher because of their hike in lending rates coupled with an improvement in prices of government securities. It may be recalled that in the first fortnight of August, several banks raised their lending and deposit rates.

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