Above posts were quite interesting from the perspective of an investor in the private banking stocks.
The past 3 years have been quite different for the well known private banking stocks i.e. HDFC Bank and Kotak Bank.
This is after long time that, both these stocks have struggled to generate any meaningful returns due to various reasons.
May be, private banks need to come up with some flexible solutions like iWish Deposit from ICICI Bank, which allows the customer to deposit any amount flexibly into the iWish Recurring FD. More innovative products like this can probably increase the interest of customers to the deposits.
Also, high rate of unemployment which is almost at the peak after about 40 years, is not allowing many people to save and hence they are unable to invest more funds into deposits. Some of my retired friends have also told me that, they are unable to save now-a-days as their expenses have moved up rapidly after retirement, and hence they are not using deposit as a product as they used to use earlier.
People with lower salaries are also probably facing similar issues of Low savings.
Apart from the fact that, Central Bank is struggling to control inflation, some other data points also might be looked at to see Why deposit growth is tepid as compared to Loan book.
I may be wrong in my analysis, as I am not from pure Finance background.
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