Deposit rates to be raised by NBFCs
By Neelima Shankar
Oct 27, 2010
Print    Email    RSS   

Deposit rates have been raised by many banks in the recent times making non banking finance companies (NBFCs) and housing finance companies (HFC) also decide to join the league.

Major HFCs like HDFC, LIC Housing Finance, DHFL and Hudco have announced to offer 7% interest on 1 year deposits as against the earlier rates of 6-6.5%.

Mahindra and Mahindra Finance (MMFL) is offering 8% interest on deposits of 1 year tenor. DHFL is paying 9% for a one year deposit where the minimum amount is Rs 10,000.

Ramesh Iyer, MD, MMFL said, "With interest rates moving up, banks have started increasing their deposit rates. As a result NBFCs too are increasing rates since there is typically a gap between rates offered by banks and us."

Says R Sridhar, MD, Shriram Transport, "We raised money for the first time in July and so we offered a slightly higher rate than some of our peers.

We have collected around Rs 500-600 crore and may consider lowering the rate now."


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

An Overview of Wealth Management Services...
FD: Opportunity for retirees to diversify...
Children’s Saving Account- teaching...
Know about corporate fixed deposits
Plan your tax, don’t evade it

MEXING: CaℒL Giℛℒ In Hoshiarpur 09855660911...
Sakeela.CaℒL Giℛℒs In Kharar 0985566O911...
NANGAL: CaℒL Giℛℒ In Una 09855660911 Escoℛt...

Federal Bank launched V connect for its customers Feb 12, 2015
Andhra Bank on expansion mode Feb 11, 2015
Dena Bank earned a profit of 13%. Feb 9, 2015
Banks expected to cut down the rates Feb 5, 2015
RBI kept the rates unchanged Feb 4, 2015
News Archive