Neha Sood
Owing to the ‘flight to safety’ behaviour of corporates, many of these have started picking up the funds they had parked in equities and private banks and transfer those to PSUs. This cautious attitude helped the companies in doubling their average deposit growth rate.
Apart from retail depositors, the HNIs; the organizations making such moves include ONGC, SAIL. Among the preferred allocated spots, SBI has come up as the most preferred one.
SBI group chairman’s OP Bhatt too, admits that the amounts they have been handling has shown an immediate and substantial rise. The rate of growth was Rs.1000 crore on per day basis in the month of November 2008. Prior to such translocations, the total amount used to be about Rs.14000 crore for the whole month.
The reasons for changes in locations for putting money comprise the downfall of well-known names and increase in the interest rates on deposits.
PNB too, has experienced such an increase in the funds deposited.
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