I refer to the news item "Public sector banks in no mood to hike savings account rates” (Business Line, March 7). Bankers are only taking undue advantage of the multitude of Savings Bank depositors who have no one to represent them. Be it retail shareholders or retail depositors, they are always left in the lurch. India has a lot of personal savings, but isn't getting the desired attention. I recall the remarks of M. R. Pai, ex-president of All India Depositors Association, who said, “The greatest asset in a bank's balance sheet is the ignorance of depositors.” Banks are keen to keep their Net Interest Margin 3 per cent plus. They won't look at retail borrowers or retail depositors, but lend large amounts to corporates at base rates, and write off large amounts. If credit sanctions and monitoring of large values are done with due diligence, it will give room to take care of retailers — both borrowers and depositors.
- L. Rangarajan (HBL
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