HDFCBank - Inflation adjusted income for banks on downward sideJust for study purpose.
In my analysis, though the income for banks are increasing steadily, what I see is, the inflation adjusted income + depreciation of INR. Its alarmingly down. ie., income for banks are going down. Why this happening. For example, I (bank) lend Rs.1,00,000 lakh in Year 2020, the CII (inflation) adjusted interest income is negative. If banks have to survive, they have to increase the lending rate (ie., interest rate). OR RBI have to print more money :-), which again depreciate money value + inflation.
Pls do your own analysis, and take calls appropriately.
Best wishes !!