Banks need to change the way they attract deposits: Report

In a scenario when fixed deposit rates in the banking sector are set to fall further, Banks might have a tough time in attracting deposits, says ‘Indian banking – the engine for sustaining India’s growth agenda’ on the sector from the Indian Chamber of Commerce and KPMG, the consultancy. It says more and more investors are looking at other investment avenues, such as mutual funds, insurance, real estate and commodities.

“While a rise in consumption is a given, all savings and investments going to banks is not. Banks would have to strive hard to attract deposits in the future, as the rising segment opens to other avenues for savings and investments such as mutual funds, insurance, real estate and commodities,” it says.

Read more >>Click here