According to a study conducted by Care Ratings, the banks in India might have to raise the fixed deposit rates by around 100 basis percent or 1 percent in the next one year.
According to the study “The banking sector has to garner 41 per cent more money in the form of new deposits in CY2011 than what they had done in CY2010 to maintain the credit growth momentum…..This would put upward pressure on the interest rates offered on deposits.”
The commodity prices and spending on infrastructure is expected to rise further this year and it will keep the banks under continuous pressure.
The agency also expects that to ease the liquidity situation the banking regulators might have to cut the cash-reserve ratio by more than 200-250 basis points.
3 comments:
are all banks gonna be increase its deposit rates?
are all banks gonna be increase its deposit rates?
expected rate of interest for 1 st week of April 2011
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