Indian Bank sheds Rs 1,500-cr costly deposits

Here is the beginning of my post. And here is the rest of it.It can raise resources cheaper by selling its investments than by accepting high-interest deposits, the Chairman and Managing Director of Indian Bank, said. Indian Bank has not renewed around Rs 1,500 crore of high cost deposits that matured after September. The bank was paying between 8.5 per cent and 9 per cent on these deposits. The bank can afford to say ‘no’ to deposits without hurting its ability to lend. With this, Indian Bank’s SLR investments work out to about 34 per cent of deposits, against the mandatory 25 per cent. It can raise resources cheaper by selling its investments than by accepting high-interest deposits.At the other end of the spectrum, micro-credit is picking up.