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How to deposit money(>5L) safely in bank?

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EnthuCC

EnthuCC

TF Premier
I saw a post of IDFC bank stock price which has been fallen ~ -29% in last 1 year. Apparently the bank had disappointing last two quarters.

How do I get assurance that depositing money in IDFC or in any other bank is safe or not? The DIGC insures amount only up to 5L only. Where do people with more than 5L in liquid money keep their money safe?

The recent news of Yes bank and some co-operative banks defaulting ruined many lives of their depositers.

What's the red flag which a depositor shall observe and move funds to a safer bank before any banking crisis occurs?
 
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sauravkumar said:
.Absolutely incorrect statement: If anyone says one bank failure (whether it is from any big banks like hdfc, icici etc or not) means that Whole Economy has Failed. - Totally wrong and disagree on this point.
There can be many more reasons. No one can say one banks failure means entire Economy failure.😑😑
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sauravkumar said:
See answer to your first point is - One bank can lead to fall in the Economy - Yes ( it's possible & we have seen it.) BUT ONE BANK FAILURE MEANS ENTIRE ECONOMY HAS FAILED - Absolutely Not Correct.
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How can something be absolutely incorrect when it has already happened in the past multiple times?

You don't seem to understand at what scale these top banks operate: Their investment/ profit/ work force. Especially hdfc, sbi,icici.

And you are fixated on one bank failure. Thing is one big bank will never fall. They are interconnected. As they have similar exposure. (And it is designed to be that way.) And if one of these fail, not only other banks will fall, but also other financial institutions will fall from insurance, mf etc. These are taught in introductory lessons of banking risk management and asset liability management.

Many people think they are called "too big to fail" just because of their size. Any possible loss can be recovered from rest. But The real reason is no govt can let them fall. If one fall ,everything falls.
 
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sidp said:
How can something be absolutely incorrect when it has already happened in the past multiple times?

You don't seem to understand at what scale these top banks operate: Their investment/ profit/ work force. Especially hdfc, sbi,icici.

And you are fixated on one bank failure. Thing is one big bank will never fall. They are interconnected. As they have similar exposure. (And it is designed to be that way.) And if one of these fail, not only other banks will fall, but also other financial institutions will fall from insurance, mf etc. These are taught in introductory lessons of banking risk management and asset liability management.

Many people think they are called "too big to fail" just because of their size. Any possible loss can be recovered from rest. But The real reason is no govt can let them fall. If one fall ,everything falls.
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Absolutely correct 👍
 
Pavan said:
Nice discussion 🙂
Now need your views on YES BANK
How safe is for large deposits
Is it good keep money in Yes bank

@SSV @BVC
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Situation has improved under sbi management but not worth the risk. There is hardly any benefit for added risk. If you want increases trv, you can take a look at yes securities. But not those segment where yes has direct control over your money- casa/fd/rd etc.

P.s. Until recently I was holding a decent trv in the hope of yes private cc. 😅 BM is trying hard but not able to provide ltf. Indusind asked full fee for heritage metal. Pin not serviceable for idfc private. Bob devalued eterna. Dont want to deal with sbi/axis. So back to good old hdfc. 😆
 
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sidp said:
How can something be absolutely incorrect when it has already happened in the past multiple times?

You don't seem to understand at what scale these top banks operate: Their investment/ profit/ work force. Especially hdfc, sbi,icici.

And you are fixated on one bank failure. Thing is one big bank will never fall. They are interconnected. As they have similar exposure. (And it is designed to be that way.) And if one of these fail, not only other banks will fall, but also other financial institutions will fall from insurance, mf etc. These are taught in introductory lessons of banking risk management and asset liability management.

Many people think they are called "too big to fail" just because of their size. Any possible loss can be recovered from rest. But The real reason is no govt can let them fall. If one fall ,everything falls.
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First of all why you have deleted my post!!😡😡

You are moderator doesn't mean you will do dictatorship and delete anyone post.!!😤😤

In that post I have shared important links. It was classical case to PROVE ONE BANK FAILURE DOESN'T MEAN ECONOMY HAS FAILED.

Do you think only Banking sector is ECONOMY??
Requesting you to study the case of SilverGate, IL&FS, Yes Bank(Rana Kapoor), PNB.
(Banking sector is only the backbone not entire economy. Grow up and study economics if you think like this. From this I can easily make an inference that you haven't have any exposure in Equity, Commodity markets - Here I am saying politely... No offense to you or anyone 😁😁).

And I absolutely understand not only the scale but also business model, balance sheet, P&L, growth, management vision because I myself have exposure many times more the amount which we are discussing here in these banking companies (as shareholder and also I attends AGMs).😑😑

And if you are quoting someone post then don't do it in bits and pieces.... Quote complete post otherwise it changes the context.😤😤

Requesting some senior moderator to please check and one suggestion if one moderator is involved in the discussion then he shouldn't have the authority to delete the posts in that thread.

Anyways whatever's I have to say I have said.
I am also resting now as I already know most of the audience here is only for CC not having much exposure in other assets class. So it is not right for me to discuss here regarding market, economy etc. I apologise!!

Enjoy!!🙏🙏
 
sauravkumar said:
First of all why you have deleted my post!!😡😡

You are moderator doesn't mean you will do dictatorship and delete anyone post.!!😤😤

In that post I have shared important links. It was classical case to PROVE ONE BANK FAILURE DOESN'T MEAN ECONOMY HAS FAILED.

Do you think only Banking sector is ECONOMY??
Requesting you to study the case of SilverGate, IL&FS, Yes Bank(Rana Kapoor), PNB.
(Banking sector is only the backbone not entire economy. Grow up and study economics if you think like this. From this I can easily make an inference that you haven't have any exposure in Equity, Commodity markets - Here I am saying politely... No offense to you or anyone 😁😁).

And I absolutely understand not only the scale but also business model, balance sheet, P&L, growth, management vision because I myself have exposure many times more the amount which we are discussing here in these banking companies (as shareholder and also I attends AGMs).😑😑

And if you are quoting someone post then don't do it in bits and pieces.... Quote complete post otherwise it changes the context.😤😤

Requesting some senior moderator to please check and one suggestion if one moderator is involved in the discussion then he shouldn't have the authority to delete the posts in that thread.

Anyways whatever's I have to say I have said.
I am also resting now as I already know most of the audience here is only for CC not having much exposure in other assets class. So it is not right for me to discuss here regarding market, economy etc. I apologise!!

Enjoy!!🙏🙏
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Good suggestion on the role of moderator....
 
sauravkumar said:
First of all why you have deleted my post!!😡😡

You are moderator doesn't mean you will do dictatorship and delete anyone post.!!😤😤
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Your post was deleted for the same reason, the other member post was deleted. You were first warned to edit the post. You didn't.
sauravkumar said:
In that post I have shared important links. It was classical case to PROVE ONE BANK FAILURE DOESN'T MEAN ECONOMY HAS FAILED.
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It's not about any one bank, it's about one top SIB.
sauravkumar said:
Do you think only Banking sector is ECONOMY??
Requesting you to study the case of SilverGate, IL&FS, Yes Bank(Rana Kapoor), PNB.
(Banking sector is only the backbone not entire economy.
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I hope you know what happens when back bone break.
sauravkumar said:
Grow up and study economics if you think like this. From this I can easily make an inference that you haven't have any exposure in Equity, Commodity markets - Here I am saying politely... No offense to you or anyone 😁😁).

And I absolutely understand not only the scale but also business model, balance sheet, P&L, growth, management vision because I myself have exposure many times more the amount which we are discussing here in these banking companies (as shareholder and also I attends AGMs).😑😑
Click to expand...
Stop assuming. I am an MBA from a decent bschool. I have dealt with banks for a long time. And I have discussed Banking, macro economics from top Bankers, CEA and even Bob shiller himself. Again if you think failure of a top bank won't destroy an economy ,then you don't understand the scale. Sbi has 22500 branches, Not employees. It has more than 2.3L employee, one of the highest in the world. Please check importance of hdfc. How much hdfc profit contribute to total profit by indias total stock market.

There is a reason banking is most regulated industry, even more than health care and pharma.
sauravkumar said:
And if you are quoting someone post then don't do it in bits and pieces.... Quote complete post otherwise it changes the context.😤😤
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There is no point in deleting the post if the same stays visible on quoted post.
 
Gentlemen let's calm down. I think it's high time this thread was closed.

Although I condemn and support censorship of any personal attacks (Idiot, kiddo, etc) the comment itself (I mean the Ideas, statements, and arguments made) should be left intact for everyone to see. The members can see if the comments made sense or tif hey were devoid of any facts and logic.
 
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So, I got this interesting idea.

I remembered that the politicians have to declare their bank account information and assets in election affidavit to ECI. I checked some affidavits of our top leaders of our country and figured that SBI is the most popular among our political leaders.

That means the top lawmakers trust SBI the most. 😊
 
SBI's owned premises - thousands of them - are in most prime locations. Since it is 200+ yrs old, almost all their properties (land, buildings....) are valued now at only Rs 1/- each. In their balance sheet. Their assets alone are worth lakhs of crores. Many times more than their liabilities.

Many of these properties are spread out in Acres (forget about sq feet or sq yards).

No one can come anywhere near SBI.
 
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