to know what exactly the scandal is first one need to understand the government
policies and economic situations at that time. That was the period of
liberalization, the economists and the politicians were fighting on the
liberalization issue. In the early 1990’s every bank in India had to maintain particular
amount of their deposits in government bonds.
This ratio was called statutory liquid ratio (SLR). It can be calculated
as total demand/total liability x100. The objective...