Stock Shastra: Banking Industry

Introduction Whenever you think of Banks what comes to your mind? Your salary account, your savings account or if you are a businessman your current account. Maybe you are also thinking about loans you took from a bank- your home loan, your auto loan or your personal loan. You also remember various ATMs with coloured lights on the drive down the long winding road. But, did you ever pause to think that how banks make money and how investments in listed banking stocks can be a profitable proposition. Let us demystify that for you. Banks are the engines of growth of a country. Long-run economic success of a country depends on the robustness of Banking sector. Banks act as an avenue to channel savings to investments in infrastructure or to spur consumer spending. A banking system, which is inherently strong and functionally diverse, is critical in creating a market-driven, productive and competitive economy. A mature system supports higher levels of investment and promotes growth in the economy with its depth and coverage.