Banking Sector Update Gap between assets and liabilities at the lowest point in the past decade - Kotak Sec
One more risk fading away.
In FY2017 the gap between retirement assets and liabilities were at the lowest point in the past decade for public banks. Retirement costs contribute ~20% to overall staff costs. The sharp decline in interest rates only increased the present value of future liabilities by 12% yoy; employee payouts declining yoy, the decline