Push for short-term money pushes rates for bulk deposits to 10%

The interest rates on short-term bulk deposits have hardened to 10 per cent, with some banks aggressively raising money, driven by asset-liability mismatch and financial year-end growth targets. Executives said those with a weak financial profile (a high level of non-performing assets and liability mismatches at the short end) were offering such high rates for short-term bulk deposits (Rs 10 crore and above).