Demonetisation may deal a bigger earnings blow to banks than to consumer firms

The impact of the demonetisation shock on corporate earnings will be felt across sectors, and will be visible as early as next week when December quarter results start trickling in.

Banks had been expected to be among the big beneficiaries of demonetisation, thanks to a flood of deposits and the resultant cut in the cost of funds. But at least in the short term, banks, too, will feel the pain no less.

The impact of the demonetisation shock on corporate earnings will be felt across sectors, and will be visible as early as next week when December quarter results start trickling in. (Livemint)

The impact of the demonetisation shock on corporate earnings will be felt across sectors, and will be visible as early as next week when December quarter results start trickling in.

Much of the narrative about demonetisation’s impact has focused on the consumer sector, because of its cash-reliant supply chains, and real estate. However, banks suffered, too, Bloomberg data shows.

For the full story read: Demonetisation may deal a bigger earnings blow to banks than to consumer firms