A bankable truth
Banks make profits by taking depositors' money and lending it to borrowers. For a very long time, public sector banks' deposit rates were very low (2-3 per cent) and their lending rates were much higher (10-18%, depending on the year). The difference between the two was so high that banks did not need to be efficient at all. They simply took Ram's money at a low rate and lent to Shyam at a high rate, and this large 'spread' allowed them to be lax. Then the predictable thing b