seek safety in state-owned public sector banks (PSBs). We trace the consequences of this reallocation using granular data … and credit quality improves at the run banks but worsens at the recipient PSBs. The effects are pronounced in weaker PSBs …

seek safety in state-owned public sector banks (PSBs). We trace the consequences of this reallocation using granular data … and credit quality improves at the run banks but worsens at the recipient PSBs. The effects are pronounced in weaker PSBs …

We utilize branch-level data on deposits of commercial banks in India to study heterogeneity in depositors' responses … empowered and are responsible for managing household finances, do withdraw their deposits from troubled banks. Our findings … withdrawing funds. Our findings suggest that news of penalties on some banks leads depositors to lose trust in the banking system …