High inflation, sluggish economic growth and reduced faith of industry in government policy has resulted in more investors relying on bank deposits than other investment avenues like stock markets, debentures, etc.
According to RBI's Annual Report 2011-12, the Deposits with banks grew by 13% from Rs. 451,680 crore to Rs. 512,030 crore in FY12. Compared with stock markets which saw Rs. 6,510 crore of outflow in shares and debentures, against Rs. 1,730 crore of investment in the preceeding year.
Uncertain global and domestic economies result in fluctuation in valuation of shares, due to which the investors look for secure options of investment and banks deposits, mainly fixed deposits are the preferred option.
Savings banks account though offer a little return but form a large deposit base along with current account to make what banks call current account savings account or CASA
Bank deposits also ate away the share of savings instruments like National Savings Certificates (NSC) which also reduced by Rs. 22,030 crore against Rs. 900 crore of inflow in the previous year.
1 comment:
Savings bank acccount & fixed deposits give some profits but other investment options like real estate and stock market gives huge benefits.
Atlanticus Investment Services
Post a Comment