Share of high-paying FDs surges to 80%
The share of term deposits offering an interest rate of 6-8% has surged to nearly 80% at the end of September from 58% at the end of March, Reserve Bank of India (RBI) data shows.
Approximately half of the fixed deposits (FDs) with banks, amounting to Rs 52.87 trillion, now offer an interest rate of 7-8%.
Suresh Khatanhar, DMD, IDBI Bank, said the liquidity deficit in the banking system was at a five-year low and banks need funds to meet credit demand. “The rates on deposits are bound to go up, but banks are not too concerned at the higher cost because credit demand is strong,” Khatanhar added.
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