Prajna Capital - An Investment Guide

With interest rates beginning to inch upwards, companies are entering the deposit market to raise funds aggressively. The interest rates on offer are quite impressive as well. Currently, Tata Motors is offering 8.75 per cent for three-year deposits and 8 per cent for two years. Jindal Steel and Power is giving 8 per cent for one year, 8.25 per cent for two years and 8.50 per cent for three years. There are some who are offering much higher rates. United Spirits is offering 11 per cent for one-year deposits and 11.50 per cent for two years. Network18, whose issue closed recently, was paying up to 12 per cent for one, two and three years. According to a company executive, deposit schemes are being launched to take advantage of low rates offered by bank fixed deposits. And, though banks deposit rates have started moving up, industry experts say it will take sometime before banks offer over 8 per cent return. Interest rates on offer by banks are visibly lower. And, while some of them have ...