Banks Go Slow On Bulk Deposits As Credit Offtake Slackens

Banks are going slow on bulk deposits in the absence of a vibrant credit offtake. In line with falling interest rates, most banks have pared rates on bulk deposits, while others are offering even lower interest rates.

Bulk deposits are generally brought in by high networth individuals, corporates and even cooperative banks.

HDFC Bank is offering interest rates 25-50 basis points lower than the prevailing rates on deposits above 91 days to bulk depositors. For deposits above 91 days to two years, the bank is offering 25 basis points lower rates. For deposits of beyond two years and up to five years, it offers rates lower by 50 basis points.