Bankers Observe Slowdown in Retail Deposits

Bankers believe that the sudden spurt in the stock market and the softening of deposits rates might encourage retail investors to look at alternatives to bank deposits for parking surplus funds. Though investors locked into long-term fixed deposits may not pull out, banks might still witness a slight slowdown in fresh deposits, according to top public sector bank executives. “This shift from bank deposits to alternative sources of investment such as the stock market might not be sudden as people who have already burnt their fingers might wait and watch for a while,” said Mr T. M. Bhasin, Executive Director, United Bank of India.

Bankers Observe Slowdown in Retail Deposits

Bankers believe that the sudden spurt in the stock market and the softening of deposits rates might encourage retail investors to look at alternatives to bank deposits for parking surplus funds. Though investors locked into long-term fixed deposits may not pull out, banks might still witness a slight slowdown in fresh deposits, according to top public sector bank executives. “This shift from bank deposits to alternative sources of investment such as the stock market might not be sudden as people who have already burnt their fingers might wait and watch for a while,” said Mr T. M. Bhasin, Executive Director, United Bank of India.

Bankers Observe Slowdown in Retail Deposits

Bankers believe that the sudden spurt in the stock market and the softening of deposits rates might encourage retail investors to look at alternatives to bank deposits for parking surplus funds. Though investors locked into long-term fixed deposits may not pull out, banks might still witness a slight slowdown in fresh deposits, according to top public sector bank executives. “This shift from bank deposits to alternative sources of investment such as the stock market might not be sudden as people who have already burnt their fingers might wait and watch for a while,” said Mr T. M. Bhasin, Executive Director, United Bank of India.