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Finance Minister Urges PSU Banks to Boost Credit Growth, Maintain Profits

  Finance Minister Nirmala Sitharaman, in a meeting with heads of Public Sector Banks (PSBs) on Friday, urged them to leverage the Reserve Bank of India’s recent  50 basis points rate cut  to accelerate lending towards the productive sectors of the economy. Sources reported that the Finance Minister asked PSBs to maintain the profitability momentum in  FY26 , building on their strong performance last year. The cumulative net profit of 12 PSBs surged to  Rs 1.78 lakh crore in FY25 , marking a 26% rise compared to the previous fiscal. In absolute terms, this meant a profit increase of about  Rs 37,100 crore . Sitharaman also emphasised the importance of financial inclusion, directing banks to onboard more customers under government schemes to ensure broader credit outreach. On  June 6 , the RBI’s monetary policy committee, led by Governor Sanjay Malhotra, cut the benchmark repo rate by  50 basis points to 5.5% . The minister highlighted that PSBs sh...
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High-Interest Fixed Deposits for Senior Citizens: Equitas SFB and Ujjivan SFB Lead the Pack

How Is Fixed Deposit Interest Calculated? | Axis Bank

In a bid to attract senior citizen investors, several banks are offering higher interest rates on fixed deposit (FD) schemes with shorter tenures. Fixed deposits remain a preferred investment for many seniors due to their safety and predictable returns, particularly after retirement when preserving capital and securing steady income becomes crucial. Though interest earned on FDs is taxable, many seniors benefit from minimal or no tax liability if their other income is low.

Top FD Rates

Among small finance banks, some are offering particularly attractive rates for FDs with tenures of up to 15 months. As of July 30, 2024, these are the top options available:

  • Equitas Small Finance Bank: Leads the pack with an interest rate of 9% on FDs with a 444-day tenure.
  • Ujjivan Small Finance Bank: Offers a competitive rate of 8.75% for 12-month FDs.
  • Bandhan Bank: Provides an 8.35% rate for 12-month FDs, the highest among private sector banks.
  • IndusInd Bank: Offers an 8.25% interest rate for 12-month FDs.

Other Notable Rates

  • DBS Bank: Provides an 8% interest rate on 376-day FDs.
  • Karur Vysya Bank: Offers 8% for 444-day FDs.
  • Federal Bank: Offers 7.9% for 400-day FDs.
  • Kotak Mahindra Bank: Provides 7.9% for 390-day FDs.
  • Central Bank of India and Indian Overseas Bank: Both offer 7.8% on 444-day FDs.

The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the RBI, guarantees deposits up to ₹5 lakh, ensuring the safety of investments.

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