Retail investors in India face diverging deposit rate strategies from two major non-banking financial companies. Bajaj Finance has increased its rates by up to 45 basis points to boost fundraising. Meanwhile, Shriram Finance plans to lower rates by 15-35 basis points after a rating upgrade.
Bajaj Finance, a prominent non-banking finance company, has raised its deposit rates by as much as 45 basis points. The move aims to accelerate fundraising efforts amid retail investor interest in fixed-income options. This adjustment comes as corporate deposits remain a key funding source for such firms, according to details from The Economic Times article on NBFC strategies. Shriram Finance, another leading NBFC, is taking a contrasting approach. The company plans to reduce its deposit rates by 15 to 35 basis points following a recent rating upgrade. This decision reflects improved creditworthiness, allowing Shriram to lower costs while maintaining investor appeal. These divergent moves highlight a dilemma for retail investors navigating NBFC deposit options. Bajaj's hike seeks to draw more funds quickly, while Shriram's planned cuts signal confidence post-upgrade. No specific implementation dates for Shriram's reductions were detailed.
