Company fixed deposits are back in vogue

Companies are reactivating their dormant fixed deposit (FD) schemes by realigning their interest rates with the market following the footsteps of the lenders.

"In today's tight market, companies are looking to raise funds at the most optimum cost. Through FDs, they can collect a large pool of funds at a lower cost,'' said Arvind Parakh, CFO, Jindal Stainless, which recently placed advertisements in newspapers for raising funds.

 

The Reserve Bank of India has raised its benchmark interest rate to 8.5 per cent