For fixed deposits interest rate offered by the foreign banks is lower than that offered by their Indian counterparts. What is the reason? In this scenario how will they be able to compete with the Indian banks? Your views?
The profile of clientele banking with foreign Banks also would not mind foregoing a bit of interest, if they are compensated by superior services. These Banks do not cater, generally, to an average banking public, as their balance thresholds are more.
Since they do not depend on funds mobilised in India alone for lending activities and also they have a much superior CASA [Current & Savings Accounts] ratio to total deposits, they do not entice public with better inerest rates on th ...more