Why are the stocks in Banking Sector usually have debts in lakhs of crores?

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Debt means liability. And liability of bank are deposits of bank because these are to be returned to the depositors some day in the future. Therefore all banks have large debts. Bigger the bank —> more is the deposits —> therefore more debt. So a very big bank like SBI is bound to have large debt.

Also in banking sector, loans given by bank are assets of bank.

Thus for example, in case of SBI Bank, it has large assets and large debts.

Thus, stocks in banking sector are bound to have large assets and large debts.


Yeah. That was my doubt, whether the debt includes the money what we deposit in banks (in savings account etc), Oh thanks for clearing.