About Rs 60,000 crore of retail NCDs are expected to be raised by the end of fiscal 2018-19 as against Rs 4,500 crore invested by retail investors in 2017-18. The interest rates on offer on these retail NCDs are between 9% and 11%, which are more attractive than the retail term deposits by at least 3% to 4%. The interest rates range from 3.5% in the savings bank account to 7.5% for a one-year to ten-year bank deposits. Mahindra Finance became the first NBFC to announce its retail NCD issuance in January 2019. Bank deposits have remained the preferred instrument of household savings in financial assets, followed by provident and pension funds, and life insurance fund.

Source: dna January 06, 2019 23:26 UTC