The Economic Times  Oct 5  Comment 
The company currently has 150 branches at present, of which 98 are in Kerala and the rest in Tamil Nadu and Karnataka.
The Hindu Business Line  Oct 4  Comment 
With the recent Supreme Court verdict, NBCC plans to start work on some of the private developers’ projects in the National Capital Region."There are
The Hindu Business Line  Sep 14  Comment 
The BBC of Haryana — Bhiwani Boxing Club, if you like — has given India many international medals. Its athletes, like others in the state’s many such clubs, are driven by the incentive of cushy jobs and fame
Financial Times  Sep 10  Comment 
Group seeks funding boost to match listed rivals Burford and Bentham
The Hindu Business Line  Sep 4  Comment 
Call for an end to policy logjam hindering research
Channel News Asia  Aug 29  Comment 
LONDON: Luxury carmaker Aston Martin said on Wednesday (Aug 29) it intended to float on the London Stock Exchange, completing a turnaround after a boost to volumes and an increase in models led to a return to profitability. If successful it would...
New York Times  Aug 24  Comment 
Known in Japan as marimo, the unusual balls of algae seem to follow a biological clock that helps them pursue sunlight while underwater.
The Economic Times  Aug 24  Comment 
Power and new and renewable energy minister RK Singh took cognisance and directed a timetable of bids is issued to ensure year-round activity.


The float refers to profits earned by a financial institution on assets that do not belong to that institution, but are held in custody for a client or other purpose. The float is an important source of profitability in a number of industries, such as:

  • Retail banking: In the case of retail banking, customers' checking accounts often earn little or no interest. However, the bank can collectively invest the money its customers have deposited in higher-yielding investments such as mortgages. The bank then earns the difference between the interest paid on the mortgage and the interest paid to customers with deposits in checking accounts.
  • Insurance: The float refers to the time period between when premiums are collected and claims paid out. During this time, insurers invest the premiums and generate returns. Legendary investor Warren Buffett of Berkshire Hathaway (BRK) was originally attracted to the insurance business since he could use low-cost float to earn higher returns on his successful investments.
  • Retail Brokerage: In recent years, stock brokerage firms (particularly E*TRADE Financial (ETFC)) have made money by investing cash left in client trading accounts and earning a float on these assets.

===Ways that financial institutions earn , interest rates rise when loans are longer-term, to compensate the lender for tying up money and making it inaccessible (this difference in interest rates is known as the Yield Curve. For example, a savings account that allows you to withdraw money at any time would pay a small interest rate, but a CD that leaves you unable to access your money for a period of months or years would pay a higher rate. While an individual bank customer might add or withdraw money unpredictably, the bank as a whole can generally count on having stable deposits across all its customers. This allows the bank to pay short-term interest on checking accounts, but then earn higher, long-term interest on these deposits by lending it out for long-term loans (such as mortgages, which typically last 30 years).

  • Assuming risk. By pursuing riskier investments, a financial institution can earn greater returns on assets on deposit.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki