Your fixed deposit interest rates may rise further. Here's why
Updated : February 07, 2019 12:24 PM IST
Over the past decade, the deposit growth has been declining, and in the past three years it saw a significant drop as the interest rates offered on FD dipped below the returns on other financial investment avenues, resulting in the diversion of household financial savings away from the banks.
Banks need to raise about Rs 25 lakh crore over the two fiscals to meet the credit growth demand, CRISIL said, adding that Rs 5-6 lakh crore is expected to become available through SLR fund and about Rs 20 lakh crore would be raised through fresh bank deposits.
CRISIL expects the credit growth in banks to rise at a pace of 13-14 percent on average between 2019 and 2020 as compared to 8 percent in FY18, which could change the deposit mobilsation plans of banks over the medium term.