BJP win in UP to trigger war on cash; banks to benefit: BofA-ML
Bharatiya Janata Party's (BJP's) landslide victory in the key state of Uttar Pradesh (UP) is likely to intensify the government's war against black money / cash, suggests the latest Bank of America-Merrill Lynch (BofA-ML) equity strategy report co-authored by Sanjay Mookim and Anand Kumar. The crackdown, the report suggests, could entail more transaction disclosure, increased tax on cash, restrict cash holdings (remaining un-implemented proposal of SITon black money). This war on cash, BofA-ML feels, will be beneficial for banks as it would result in more financial inclusion, more fees and potential lending. Better reporting can allow private banks to compete with the public sector units (PSUs) for SME (small and medium enterprises) business, it says. Also Read: UP poll result has made a mockery of the criticism that demonetisation got: Chris Wood "Loan waivers (if large enough and if replicated outside of UP) can be taken negativ...