Corporates turn to MFs as banks limit bulk deposits

Oct 20

Corporates turn to MFs as banks limit bulk deposits

India Inc’s investments in mutual fund schemes have seen an increase as most banks have been refusing bulk deposits due to the high interest rates they have to offer. A senior official of a PSU bank said that rising interest rates have put pressure on net interest margins of banks, forcing them to reduce exposure to bulk deposits. As a result, corporations are turning to mutual funds to park their money.
http://www.thehindubusinessline.com/markets/article2552160.ece

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