What do banks in India do with the huge deposits of its users?



How does bank give interest to its depositors? Where do they invest? how do they provide this additional money to depositors?

What do banks in India do with the huge deposits of its users?
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One Reply to “What do banks in India do with the huge deposits of its users?”

  1. hello, banks are meant for both the lending and depositing tasks. they lend to the businesses and other corporations to carry out their business affairs. the lending is done on some security/surety basis. they charge the interest on these lending say about 14-20%. banks also do investments in other schemes which give them good returns. banks give the interest about 9% to 11% interest on the deposits and the difference is their profit.





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