In USA most of the banks engaged in mortgagemarket by lending without seeing the client's creditworthiness. But most of the customers fail to repaythe long term loan. The banks are allowed to recover such loans by sale of such properties.
The total funds have to be reinvested in profitableway. Most of the banks see(BRIC countries)India isone of the countries where they can get better returnand also india’s inflation is arround 4% and growthrate is around 9%.
BRIC-Bracil, Russia, India and China