The liquidity situation may be
comfortable, but banks have started building up their balance sheets ahead of
the financial year-end to meet yearly targets. This has resulted in a spike in
bulk deposit rates as banks are offering as much as 9.4-9.6% as compared to the
card rate of 9% for one-year deposits. Bulk deposits are typically Rs 10 Cr and
above. Canara Bank, for example, has sealed a Rs 500-Cr bulk deposit deal of
one-year maturity with an Andhra Pradesh-based PSU for 9.61%. Similarly, Bank of
Baroda offered 9.41% for a Rs 200-Cr deal. The card rate for deposits of similar
maturity is 9%. Spectrum outflow and advance tax have left banks worried about
liquidity ahead of the financial year-end. Banks are offering 9.4-9.6% as
compared to the card rate of 9% for one-year deposits.
No comments:
Post a Comment