Earlier adopted by SBI when it raised short term deposits to 6-6.5%, HDFC Bank is pushing for annual savings budgets up for grabs this month offering upto 9.25% for one year deposits.
There is nothing confounding in getting aggressive on these terms and neither does it reflect on the bank’s liquidity flush as it is from the 0.5% CRR cut, that released techncally 35,000 crores or $ 7 bln in the Inter bank markets even if the release of INR 20,000 crores does not satisfy the bank’s immediate liquidity, it is probably just fine tuning its Treasury strategy to optimise costs as it dleivers the consistent 3.1% NIM for this coming quarter. The deposits will compete with banks like Yes and Kotak who have grown savings bank deposits by 50% this quarter after deregulation of savings bank rates
The India Investment Post (earlier india.advantages.us) 