FDs regain the lost lustre- NFBCs and banks lure customers with attractive schemes
After the recent money policy was introduced, some companies and banks are offering 10.5 % interest rates on deposit schemes. The banks have even revised their Fixed Deposit (FD) rates and the investors are happy to see an upward trend. This move is taken in order to tap money from the retail investors and raise capital for operational needs. Many non-banking financial companies (NFBC) and banking units like Bajaj Finserve, HDFC, LIC Housing Finance and PNB Housing Finance have rolled out several schemes to lure the retail investors.
Mahindra Finance had already rolled out a similar scheme and managed to collect between Rs 225 Crore and Rs 250 crore on a month on month basis. V Ravi the chief financial officer of Mahindra Finance is hopeful that the contribution from retail FDs of the company’s total fund requirement will go up to 15% from the current 10%. Ravi said that the company so far has collected Rs 4,500 crore in retail deposits from 2.5 lakh depositors.
Chief executive officer Sanjay Gupta said PNB Housing which offers about 9.5 % on one-year FDs raised about Rs 175 crore to Rs 200 crore from the investors. This total corpus includes pension funds, educational trusts and individuals.
Bajaj Finserve is raising one-year FDs at rates about 25 to 50 basis points higher than those offered on bank FDs to fund operational and other expenditures.
Mortgage financier HDFC’s Platinum deposit scheme offers 9.50 % per annum, however has tenures of 15 months, 22 months and 33 months. LIC Housing Finance’s one-year FD scheme offers 9 % for one year, 9.25 % for two years and 9.40 % for three years.
Source- Financial Chronicle
attractive scheme, Bajaj Finserve, HDFC, LIC Housing Finance, Mahindra Finance, Non-banking financial companies, PNB Housing Finance
