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Comments by "M" (@mg.f.9023) on "How have banks reached record profits of more than Rs 3 lakh crore?" video.
Public Sector Banks lend to NBFCs at a very high interest rate - NBFCs lend to insider traders at much higher interest rates - Insider traders make big money in rising stock market and payback the higher interest rate loans. All stakeholders happy & healthy! What will happen when the music stops (stock prices crashes?) No problem, insider traders will short the market (knowing before hand) and make big money and keep the stake holders healthy and happy. Problem ONLY for the retail stock investors who are caught with stocks at very high price that are now depleted in price.
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