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The State Bank of India (<keyword id="19898108" type="General" weightage="20" keywordseo="sbi" source="keywords">SBI</keyword>) in its latest report has asked for <keyword id="20213295" type="General" weightage="20" keywordseo="tax-reforms" source="keywords">tax reforms</keyword> after concerns were flagged over the recent decline in <keyword id="20202062" type="General" weightage="100" keywordseo="bank-deposits" source="keywords">bank deposits</keyword>. The report says tax Reforms for Deposits can accentuate the banking system's stability and resilience to the next level. SBI attributed the fall in deposits to the varied rates of return offered by different <keyword id="20139443" type="General" weightage="20" keywordseo="investment-options" source="keywords">investment options</keyword> for similar time frames and different tax rates on <keyword id="22837794" type="General" weightage="20" keywordseo="returns-on-deposits" source="keywords">returns on deposits</keyword>. The <keyword id="20352499" type="General" weightage="20" keywordseo="SBI-report" source="keywords">SBI report</keyword> said that "<keyword id="20658792" type="General" weightage="20" keywordseo="tax-treatment" source="keywords">Tax treatment</keyword> of bank and non-bank channels are non-uniform, even as bank deposits have a wider and denser pass-through effect across the populace sensitivity of Deposits on Tax is as much as 7 per cent" The report noted that a bank deposit of Rs 10 lac in a Savings Bank (SB) account at an investment return of 3 per cent would generate Rs 30,000 in returns and after accounting for taxes and exemptions, the <keyword id="22837795" type="General" weightage="20" keywordseo="net-return" source="keywords">net return</keyword> would be Rs 16,000. The report adds that the net returns vary significantly if deposits are made in different instruments like <keyword id="21041176" type="General" weightage="20" keywordseo="term-deposits" source="keywords">term deposits</keyword>, short and long-term investments in debt funds, liquid funds or bonds. The tax rates on these deposits also favour saving banks or term deposits. The report illustrates a term deposit of up to one year with the same principal amount of Rs 10 lac at a yield of 6.25 per cent would result in a net return of Rs 50,000 after taxes. But for term deposits exceeding one year the interest rate is higher and with an interest rate of 7.25 per cent, the gross return would be Rs 72,500. After taxes, the net return would be Rs 58,000. The data highlights that similar type of investments for the same period generates significantly different returns because of different tax treatment by the government. Similar variations are observed in other <keyword id="20105084" type="General" weightage="20" keywordseo="investment-plans" source="keywords">investment plans</keyword> as well. For instance, investments in equity and mutual funds with a 2 per cent dividend income of Rs 10,00,000 generate Rs 20,000, which after taxes the net return is Rs 16,000. However, Short-term investments of less than one year in equity and mutual funds, offering an 11 per cent return generate Rs 1,10,000, with a net return of Rs 88,000 after taxes. This investment if made in Long-term investments of more than one year the return increases to 15% on Rs 10,00,000 and generates Rs 1,50,000 annually. With a lower tax bracket of 12.5 per cent tax on long-term investments and applicable exemptions, the net return is Rs 1,43,750. These variations in returns across different deposits and investment options highlight the complexity and thus investors are choosing the higher return options over the bank deposits which in turn poses a threat to the deposit growth in the banking sector.

Decline in bank deposits because of non-uniform tax treatment on various investment options: SBI report

The <keyword id="20771894" type="General" weightage="20" keywordseo="Deposit-Insurance-and-Credit-Guarantee-Corporation" source="keywords" meta.keywordsubtype="org" meta.entityname="Deposit Insurance and Credit Guarantee Corporation" meta.hostid="261" meta.entityid="Deposit Insurance and Credit Guarantee Corporation">Deposit Insurance and Credit Guarantee Corporation</keyword> (<keyword id="20481418" type="General" weightage="100" keywordseo="DICGC" source="keywords">DICGC</keyword>) has launched an online tool <keyword id="23086289" type="General" weightage="20" keywordseo="Daava-Soochak" source="keywords">Daava Soochak</keyword> for <keyword id="20560967" type="General" weightage="20" keywordseo="depositors" source="keywords">depositors</keyword> to track their claim status. The <keyword id="20481418" type="General" weightage="100" keywordseo="DICGC" source="keywords">DICGC</keyword>'s mandate since its inception has been the reimbursement of insured amounts to <keyword id="20560967" type="General" weightage="20" keywordseo="depositors" source="keywords">depositors</keyword> of failed banks. <keyword id="23086289" type="General" weightage="20" keywordseo="Daava-Soochak" source="keywords">Daava Soochak</keyword>, a user-friendly online tool, is part of DICGC's ongoing commitment to improving the services provided for depositors. "Depositors can now track the status of their claims by entering their mobile number (registered with their bank) on the DICGC website," said DICGC, a wholly-owned subsidiary of the Reserve Bank of India (<keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword>). To begin with, depositors can view the status of their claims for banks placed under All Inclusive Directions (AID) post-April 01, 2024. The corporation ensures that all categories of deposits with banks except institutional deposits. The <keyword id="20132734" type="General" weightage="20" keywordseo="deposit-insurance" source="keywords">deposit insurance</keyword> coverage limit has been enhanced six times since 1962, from Rs 1,500 per depositor held in the same right and same capacity at all the branches of the insured bank to Rs 5,00,000 on February 04, 2020. At present, 97.8% of the total deposit accounts are fully protected. Of the remaining 2.2 % of accounts, deposits are insured up to the limit of Rs 5 lakh. In terms of value, 43.1 % of the deposits were insured as of March 2024. In the case of liquidated banks and banks under the Reserve Bank's All-Inclusive Directions (AIDs), the DICGC settled claims amounting to Rs 1,432 crore during 2023-24. During the year, it received repayments of Rs 900.73 crore, of which Rs 760.83 crore was from liquidated/transferee banks and Rs 139.90 crore from banks under AID. All banks operating in India are registered with the corporation for <keyword id="20132734" type="General" weightage="20" keywordseo="deposit-insurance" source="keywords">deposit insurance</keyword>. The number of banks registered with DICGC was 1,997 as of March 31, 2024, of which 140 were commercial banks and 1,857 were cooperative banks. The total premium received by the corporation during 2023-24 stood at Rs 23,879 crore, with commercial banks contributing 94.4% and cooperative banks accounting for the remaining 5.6 %.

DICGC introduces Daava Soochak for depositors to track claim status

The <keyword id="21570567" type="General" weightage="100" keywordseo="credit-offtake" source="keywords">credit offtake</keyword> continued to grow at the rate of 13.9% year-on-year to reach Rs. 168.1 lakh crore for the fortnight ending July 12, 2024. However, the pace of growth was slow, a Care Edge report said. Credit offtake is a type of <keyword id="19946069" type="General" weightage="20" keywordseo="bank-credit" source="keywords">bank credit</keyword> that assists businesses in getting financing for future projects. The credit offtake increased by 14.0% year-on-year, but declined by 0.4% sequentially for the fortnight ended July 12, 2024. Over the last twelve months, credit offtake expanded by Rs. 20.4 lakh crore. The report attributed the sluggishness to the higher base effect and banks' focus on restraining the credit-to-deposit (CD) ratio. <keyword id="20218853" type="General" weightage="20" keywordseo="deposits" source="keywords">Deposits</keyword> grew by 11.3 % year-on-year for the fortnight, including the impact of the HDFC merger, reaching Rs. 211.8 lakh crore, driven by growth in time deposits. "The <keyword id="20575555" type="General" weightage="20" keywordseo="credit-to-deposit" source="keywords">Credit to Deposit</keyword> ratio stood at 79.4 % for the fortnight (July 12, 2024). Meanwhile, if we study the credit and deposit inflows over the past 3 months and 6 months, we can observe that credit offtake has lagged the deposit growth numbers. Hence, the <keyword id="20048508" type="General" weightage="20" keywordseo="CD-ratio" source="keywords">CD ratio</keyword> derived from these flows from January would be around 70% and from March would be approximately 54%," the report added. The report added that going forward, bank credit offtake could face challenges, and is likely to be tepid for the entire year. Inflows over the past three and six months show credit offtake at 5.3% for six months and 2.3% for three months, lagging behind deposit growths of 6.0% and 3.4% respectively. Deposits rose by 11.3% year-on-year for the fortnight, but declined by 0.5 % sequentially. In absolute terms, deposits expanded by Rs. 23.9 lakh crore over the last twelve months. The report anticipated that the deposit is expected to be strong in FY25, as banks focus on strengthening their liability franchise, sourcing funds through certificates of deposit, despite higher costs. As per the data in the report, the absolute growth in credit offtake was Rs. 8.4 lakh crore for six months, and Rs. 3.8 lakh crore for three months, lagging behind deposit growth of Rs. 11.9 lakh crore and Rs. 7.0 lakh crore for the same periods. The CD ratio has floated around 80 % since September 2023, standing at 79.4 % for the fortnight ending July 12, 2024, as per the report.

Credit offtake expanded by Rs. 20.4 lakh crore, deposits by Rs 23.9 lakh crore over the last 12 months

As Finance Minister Nirmala Sitharaman holds a review meeting with heads of Public Sector Banks and Regional Rural Banks on Monday, the State Bank of India (SBI) in its latest report noted that the belief that the deposit growth in the banking sector is flagging is just a statistical myth. However, the report highlighted that, while it's true that <keyword id="19998083" type="General" weightage="20" keywordseo="credit-growth" source="keywords">credit growth</keyword> has outpaced deposit growth in recent years, leading some to trumpet this as a sign of decelerating deposit activity, a deeper analysis reveals a different story. The report highlighted that in FY23, the banking sector, particularly All Scheduled Commercial Banks (ASCBs), registered the highest absolute growth in both deposits and credit since 1951-52. Deposits grew by an impressive Rs 15.7 lakh crore, while credit expanded by Rs 17.8 lakh crore, pushing the incremental Credit-Deposit (CD) Ratio to a staggering 113 per cent. The momentum continued into FY24, with deposits rising by Rs 24.3 lakh crore and credit by Rs 27.5 lakh crore. Despite the narrative suggesting a slowdown in deposit growth, the data tells us otherwise. Since FY22, incremental deposit growth has actually outpaced incremental credit growth, with deposits increasing by Rs 61 trillion compared to Rs 59 trillion in credit. "Decadal Deposits have expanded by a sharp 2.75 times, but Decadal credit expanded by 2.8 times since FY22, deposits expanded Rs 61 trillion vis-a-vis credit expansion at Rs 59 trillion," said the report. The report noted that the key issue at play here is not the quantum of deposits but the pricing. Historical trends have shown periods where credit and deposit growth diverge for 2 to 4 years. "The myth of a flagging deposit growth appears as just a statistical myth with credit growth outpacing deposit growth being tom-tommed as a deceleration in deposit growth" said the report. According to a Reserve Bank of India (RBI) study, as of June 2024, we are in the 26th month of this divergence, with predictions indicating that the cycle could end between June and October 2025. "The end of the divergence cycle could be June 2025 -October 2025" the report noted. The report also added that once this divergence ends, deposit growth is expected to pick up, while credit growth could slow significantly, signaling the beginning of a rate reversal cycle and a potential economic slowdown. Another noteworthy trend in the banking system is the decline in CASA (Current Account Savings Account) deposits. The report stated that the CASA deposits fell to 41.0 per cent in FY24 from 43.5 per cent in FY23, largely due to a decline in SB (Savings Bank) deposits. This decline, while somewhat aligned with pre-pandemic levels of 42 per cent, reflects a shift in how SB deposits are being used. Increasingly, SB deposits are being used primarily for transactional purposes, particularly UPI transactions, leading to greater movement across the banking system and raising concerns about the stability of SB deposits. Moreover, the rising returns on term deposits have been driving a significant compositional shift in bank deposits. The share of term deposits in total deposits has increased to 59.0 per cent in FY24 from 56.5 per cent in FY23, while the share of CASA deposits has continued to decline. The report said that this shift is a natural response to the increasing interest rate environment, as funds move from low-interest CASA accounts to higher-yielding time deposits. On an incremental basis, term deposits accounted for nearly 78 per cent of the total deposits in FY24, underscoring the impact of higher <keyword id="19950650" type="General" weightage="20" keywordseo="interest-rates" source="keywords">interest rates</keyword> on deposit behavior. In conclusion, while the myth of declining deposit growth may persist, the reality is more nuanced. Deposit growth remains strong, with term deposits taking a larger share of the pie as interest rates rise. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/news/google-pixel-9-pro-fold-launched-in-india-at-172999-but-you-cant-get-your-hands-on-it-right-now/articleshow/112517193.cms">Google Pixel 9 Pro Fold launched in India at ₹1,72,999, but you can’t get your hands on it right now</a> <a href="https://www.businessinsider.in/stock-market/news/ipo-scam-two-victims-from-hyderabad-lose-over-11crore-in-fake-ipo-scams/articleshow/112488051.cms">IPO scam – Two victims from Hyderabad lose over ₹11 crore in fake IPO scams</a> <a href="https://www.businessinsider.in/tech/news/indias-wearables-market-decline-for-the-first-time-as-smartwatch-shipments-fall/articleshow/112397246.cms">India’s wearables market decline for the first time as smartwatch shipments fall</a>

SBI report dismisses bank deposit concerns as a 'Statistical Myth'

<ul class="summary-list"><li>Russia's war economy ins't in imminent danger of collapse, economist Vladislav Inozemstev said.</li><li>That's because Russia has adapted to the war and looks more stable than it did a few years ago.</li></ul>Russia may stand a better chance at sustaining its war economy than previously thought.That's according to Vladislav Inozemstev, an exiled Russian economist who thinks the chances of an economic collapse in the country have dwindled despite the chorus of experts who predicted a <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-crisis-ukraine-war-moscow-inflation-sanctions-putin-spending-2024-10">grim</a> <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-ukraine-war-moscow-putin-inflation-labor-shortage-rates-2024-5">economic</a> <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-population-decline-worker-shortage-growth-outlook-ukraine-war-2024-8">future</a>.Inozemstev, who has been critical of Putin's regime and left Russia after being labeled as a "<a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-ukraine-war-moscow-business-national-security-treason-spying-2024-10">foreign agent</a>" in 2023, said the nation's trajectory looked similar to the Axis Powers in the 1930s, when the group of nations rose to prominence partly due to their "highly effective market economies," he wrote in a recent <a target="_blank" href="https://www.memri.org/reports/russias-economic-prospects-2025-and-beyond">op-ed</a> published by the Middle East Media Research Institute. The comparison suggests that Russia will be able to sustain its war-driven economy for longer than many expected, he said, dismissing the notion that Russia was headed for a <a target="_blank" class="" href="https://www.businessinsider.com/russia-ukraine-war-economy-soviet-union-spending-workers-flee-imf-2024-2">Soviet Union-style</a> collapse."The war, formally an 'emergency,' has been rethought as a 'new normal' that can be waged indefinitely. Even though many experts are still talking about the aggravating slowdown in Russia, the Kremlin is mostly right: These days, the economy is the Russian dictator's reliable rear," Inozemstev said. "To conclude, I would argue that Russia seems to have become a long-term threat to the Western world whose chance of economic collapse is extremely small," he later added.Russia's finances appear to have stabilized since the early days of the war, when even the Kremlin <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-collapse-putin-moscow-gdp-outlook-ukraine-war-sanctions-2023-11">admitted the economy was on the verge of collapse</a>.Federal revenue has exceeded expectations for the past several years, Inozemstev noted, rising 28% on an annual basis from the months of January and October, according to <a target="_blank" class="" href="https://interfax.com/newsroom/top-stories/107508/">Interfax</a>. Russia also posted a <a target="_blank" class="" href="https://www.reuters.com/markets/europe/russia-records-budget-surplus-01-gdp-jan-sept-2024-2024-10-09/#:~:text=MOSCOW%2C%20Oct%209%20(Reuters),Finance%20Ministry%20said%20on%20Wednesday.">small budget surplus</a> through the first nine months of the year and is estimating only a small budget deficit of 0.5% of GDP in 2025, according to data from Russia's finance ministry.Russia's economy has <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-outlook-defense-budget-spending-ukraine-war-putin-sanctions-2024-10">held up</a> partly due to its <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-ukraine-war-moscow-military-spending-inflation-worker-shortage-2024-2">hefty war spending</a>, experts have said, which has boosted growth despite soaring <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-outlook-stagflation-recession-inflation-gdp-growth-ukraine-war-2024-9">inflation</a>, <a target="_blank" class="" href="https://www.businessinsider.com/russian-central-bank-raises-key-interest-rate-to-21-2024-10">high interest rates</a>, and a labor market <a target="_blank" class="" href="https://www.businessinsider.com/russian-economy-brain-drain-labor-shortage-workforce-exodus-capital-flight-2023-9">short of millions of workers</a>.Russia has also taken measures to boost business activity, Inozemstev said, such as by not hiking taxes for entrepreneurs and self-employed workers, while implementing subsidized loan programs for businesses. That means many businesses are sheltered from the pain of higher borrowing costs — and they could actually benefit from the surge in inflation in Russia, which could raise profits, he added.Bank deposits from Russian citizens and corporations, meanwhile, have swelled 54% since 2022, according to central bank data. Russia's war economy also looks to have gained the acceptance of the Russian people, who are benefiting from <a target="_blank" class="" href="https://www.businessinsider.com/russia-war-economy-boosts-wages-salaries-beat-inflation-labor-crunch-2024-2">higher wages</a> amid the nation's severe worker shortage. It's another key factor that makes Russia's economy likey more stable than many have thought, Inozemstev said."The economy, I would argue, is now undergoing another wave of adaptation to the changing conditions," Inozemstev wrote. "The people realize that the 'war economy' has substituted the anemic economic condition of the 2010s."Inozemstev said he expected Russia's economy to continue to grow in 2025 and beyond, forecasting 2%-2.5% GDP growth next year. The <a target="_blank" class="" href="https://www.imf.org/en/Countries/RUS">International Monetary Fund</a> has said it is expecting Russia's economy to expand by 3.6% in 2024.

The odds of Russia's economy collapsing are 'extremely small' and the war can go on for the long term, economist says

The Congress on Wednesday said the <keyword id="19900449" type="General" weightage="20" keywordseo="government" source="keywords">government</keyword>'s proposal of giving individuals the option to choose between two tax rates for long-term capital gains (<keyword id="6357448" type="General" weightage="20" keywordseo="LTCG" source="Orion">LTCG</keyword>) tax on properties is not enough. It should also allow <keyword id="21006654" type="General" weightage="100" keywordseo="indexation-benefits" source="keywords">indexation benefits</keyword> for other forms of <keyword id="20044873" type="General" weightage="20" keywordseo="savings" source="keywords">savings</keyword> such as <keyword id="19905382" type="General" weightage="20" keywordseo="stocks" source="keywords">stocks</keyword> and <keyword id="19975805" type="General" weightage="20" keywordseo="fixed-deposits" source="keywords">fixed deposits</keyword>. Professionals' Congress Chairman Praveen Chakravarty accused the government of "betraying" the middle and salaried class in the Union Budget through the removal of indexation and higher taxes on their savings and <keyword id="22703183" type="General" weightage="20" keywordseo="investment-gains" source="keywords">investment gains</keyword>. "On 23rd July, Finance Minister <keyword id="19916618" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="keywords">Nirmala Sitharaman</keyword> presented the government's budget in Parliament. We welcomed certain aspects but we strongly opposed many parts of the budget. We welcomed the fact that the FM took some ideas from the Congress party's manifesto such as the employment linked incentive (ELI) scheme, the Apprenticeship Act and removing Angel tax," Chakravarty said at a press conference at the AICC headquarters here. Among other things, we strongly opposed what the finance did to the middle class and salaried professionals, he said. Leader of the Opposition Rahul Gandhi in his response to the Budget in Parliament categorically said that this was a "betrayal of the middle class" through removal of indexation and higher taxes on their savings and investment gains, Chakravarty pointed out. "He (Gandhi) had promised to fight for the middle class on this issue. This issue affected nearly 7 crore Indians who filed income taxes, owned or aspire to own a home and invest their savings. In this budget, effectively, through removal of indexation and increase in capital gains taxes, the taxes of salaried professionals through investment gains went up dramatically," he said. Already, the middle class and the salaried professionals are bearing the brunt of taxation under the Modi government because for the first time in India, total income taxes paid by middle class individuals are higher than taxes paid by rich corporates, Chakravarty said. There were huge protests on social media and in business events in cities like Mumbai where professionals came out spontaneously to protest, he said. Chakravarty said the <keyword id="22703184" type="General" weightage="20" keywordseo="All-India-Professionals-Congress" source="keywords" meta.keywordsubtype="org" meta.entityname="All India Professionals' Congress" meta.hostid="261" meta.entityid="All India Professionals' Congress">All India Professionals' Congress</keyword> and the Congress Party launched a campaign to 'Bring Back Indexation' with a petition asking people to sign it. "We had nearly 12,000 people who signed the petition in just one day since its launch. Yesterday, the government of India announced a rollback of indexation of property gains by giving individuals the option to continue with indexation benefits. We welcome this. This is a victory to the 7 crore people that file income tax," he said. "But this is not enough. We urge the government to allow indexation benefits for other forms of savings too such as stocks, debt, fixed deposits and so on," Chakravarty asserted. More importantly, this is a testament to middle class power and the power of democracy, he said. "When professionals come together and raise their voice, it will be heard. This is also proof of what a strong Opposition and a concerted and united effort can achieve for the people of India. The AIPC will continue to raise issues that impact the middle class working professionals," Chakravarty said. His remarks come a day after the government proposed significant relief for individuals who bought houses before July 23, 2024, by giving them the option to choose between two tax rates for long-term capital gains (LTCG) tax. The Budget 2024-25 had proposed to lower the LTCG from 20% to 12.5% but removed the indexation benefits. The new rates have come into effect from July 23, 2024. The indexation benefit allowed the taxpayers to compute gains arising out of the sale of capital assets after adjusting for inflation. The tax experts had said that the proposed changes in the Budget would raise the LTCG tax burden. As per the amendments to Finance Bill, 2024, circulated to the Lok Sabha members on Tuesday, individuals or HuF who bought houses before July 23, 2024, can compute his/her taxes under the new scheme (@12.5% without indexation) and old scheme (@20% with indexation) and pay such tax which is lower of the two. After the Budget presentation, the Income Tax department said that 'substantial tax savings' are expected for a vast majority of taxpayers due to a reduction in the long-term capital gains tax (LTCG) rate in the real estate sector. As per the changes brought in the 2024-25 Budget, the government has retained the indexation benefit for the taxpayers on properties bought or inherited before 2001.

Allow indexation benefits for savings such as stocks, fixed deposits: Cong to govt

<keyword id="22661695" type="General" weightage="20" keywordseo="Regulatory-moves" source="Orion">Regulatory moves</keyword> discouraging <keyword id="19972907" type="General" weightage="20" keywordseo="retail-investors" source="keywords">retail investors</keyword>' <keyword id="22661696" type="General" weightage="20" keywordseo="derivative-market-bets" source="Orion">derivative market bets</keyword> may help the <keyword id="59197" type="General" weightage="20" keywordseo="banking-system" source="Orion">banking system</keyword> garner the much-needed <keyword id="6496248" type="General" weightage="20" keywordseo="deposits" source="Orion">deposits</keyword>, <keyword id="46004" type="General" weightage="20" keywordseo="SBI-Chairman" source="Orion">SBI Chairman</keyword> <keyword id="1937145" type="General" weightage="20" keywordseo="Dinesh-Kumar-Khara" source="Orion">Dinesh Kumar Khara</keyword> has said. Khara said the budget announcements like the tweaks on the short-term and long-term capital gains will not lead to much gains from a deposit accretion perspective. "<keyword id="20031465" type="General" weightage="100" keywordseo="FO" source="keywords">F&amp;O</keyword> (future and options) kind of things are being discouraged for the retail (investor) by the regulator. Those who are resorting to such kind of an instrument, they might come back to the banking system," Khara told PTI over the weekend. It can be noted that concerns over losses incurred by 90 per cent of investors in the derivative trades have led to fears of household savings being blown in speculation rather than being deployed for productive purposes among policymakers. As per <keyword id="20033427" type="General" weightage="20" keywordseo="capital-markets" source="keywords">capital markets</keyword> regulator Sebi, retail investors lost Rs 52,000 crore in such activity in FY24 alone which necessitates a clampdown. Sebi has come up with a seven-point plan to reduce such trades, while some moves in the Union Budget are also targeted to reduce such activities. For the last three years, the deposit growth is unable to keep pace with credit expansion, and Khara said the money is going into alternative avenues like capital markets. He, however, stressed that the bank account is the primary avenue for parking the savings and continue to attract interest, and reminded that there was a phase of deposit growth trailing credit growth in 2011 as well witnessed by the banking system. At present, concerns are being raised about the wedge between the deposit and credit growth leading banks to go slower on granting loans, which can be be detrimental for the overall economic growth. <keyword id="19898108" type="General" weightage="20" keywordseo="SBI" source="keywords" meta.keywordsubtype="org" meta.entityname="SBI" meta.hostid="153" meta.entityid="SBI">SBI</keyword>, the country's largest lender which commands over a fifth of market share, is targeting a credit growth of 15 per cent in FY25 and a deposit growth of 8 per cent, Khara said. Stating that the bank will try to get the deposit growth at 10 per cent, he made it clear that the credit growth target can be achieved even with a slower pace of deposit growth of 8 per cent due to its liquidity position. The bank chose to deploy excess deposits in the past into its investment book and is currently unwinding the same as it caters to the credit demand, Khara said. He said the bank's liquidity coverage ratio stands at 128 per cent and it has decided to keep it over 110 per cent.

Discouraging retail play in F&O may help banks garner deposits: SBI Chairman

<ul class="summary-list"><li>Nvidia has been a cash cow for investors lucky enough to have bought in before the AI-fueled rally.</li><li>Shares of the company have gained 1,500% since 2019 as its GPUs power the AI revolution.</li></ul>The dizzying rise of Nvidia stock in recent years has produced extraordinary gains for many retail investors, especially those who got in before the chipmaker became an artificial-intelligence superpower.The stock's steep climb — up over 1,500% since 2019 — has transformed the lives of some of Nvidia's long-term retail investors, resulting in comfier retirements, new cars, and gains worth millions for some. Business Insider reviewed brokerage and account statements to verify the gains and account balances of the investors it spoke with, some of whom asked to be identified by their first names only to protect their privacy. Tom, a 48-year-old retail investor in New Jersey, first bought Nvidia in 2011, when the stock was valued at just about $5 a share. He put in $12,000 at the time and then another $50,000 in 2022. His total stake is now worth $3 million. His fortune, which remains mostly invested and untouched, was a matter of research and good timing, he said."They were the original creators of the GPUs," he said. "I'm not even much of a techie. I'm not a computer person at all, but I knew that the GPUs would be worth something one day."Nvidia went from a gaming icon to an AI superpower seemingly overnight. In the early days of the pandemic, its stock climbed as gamers, with time on their hands under COVID-19 lockdowns, scrambled to upgrade their computer rigs with the latest Nvidia GPUs.Then, in November 2022, the debut of OpenAI's ChatGPT fueled a run of stunning growth for Nvidia as its GPUs were the only game in town when it came to powering such AI programs. The stock has essentially gone parabolic since. According to Vanda Research, Nvidia has become the top stock among retail investors, surpassing retail portfolio concentrations of Apple, Tesla, and SPY, the most popular S&amp;P 500 exchange-traded fund. Tom said his Nvidia stake was worth about three times what he had in his 401(k) and that he felt more comfortable that he'd be able to live well in retirement, a concern that loomed over him before he went in on Nvidia.<h2>Generational wealth</h2>Kiana Danial is the 40-year-old founder of Invest Diva, a company that helps women take control of their financial future and create generational wealth.Danial hadn't heard of Nvidia before 2015, when she married her husband, who was a gamer in his free time. Danial said she liked to invest in products she uses, but when she heard her husband talk about how much he loved Nvidia, she decided to buy the stock.She first bought Nvidia in June 2016. She purchased 10 shares and shortly after continued setting new buy orders every month. "The investments started growing pretty rapidly," Danial said.Nvidia shares tumbled by more than 30% in 2018. During that time, Danial continued adding to her positions and started adding Nvidia to her Roth IRA and a Roth IRA she set up for her daughter. Danial sold the bulk of her shares in February and March 2023 to help partially cover a large down payment on a second home. <div type="image" title="Pool at Kiana Danial's house" height="1024" width="2465" msid="109541559" hostid="261"></div>Danial sold 800 shares over a six-week period for about $188,795, bringing her total number of shares down to 323. "I'm obviously kicking myself," Danial said about selling the stock. "But we bought our dream house and it's beautiful."The stock she still owns has left her with $202,940 in gains. She doesn't plan on selling her shares anytime soon and intends to buy more.Danial's daughter recently turned 6, and the account Danial set up for her has grown 568% and is worth around $11,000.The investors Business Insider spoke with piled into Nvidia early on because of its renown among PC gamers, but today, the company's chips are the lynchpin of the AI revolution — and there is virtually zero competition.The company's dominance has made it hard to find anyone willing to give the bear case, though <a href="https://markets.businessinsider.com/news/stocks/nvidia-stock-price-prediction-artificial-intelligence-gpu-earnings-forecast-rally-2024-4">some analysts have recently sounded more hesitant</a> about further gains after the stock's meteoric rally. <h2>New financial security </h2>Rick, a 36-year-old retail investor in Texas, started buying Nvidia in 2009. The stock caught his eye because, at the time, the company seemed like the future of gaming. He invested $600, which he described as a wild-card bet. "And so $600 turned into $140K," Rick said. With Nvidia, Rick said he felt he had a safety net to fall back on. He's spent only a small portion of his gains so far: $15,000 to flip a car he worked on, a hobby he said he wouldn't have gotten into without the Nvidia money. For his 10th anniversary, he and his wife packed their bags for a $14,000 getaway in Costa Rica."I had zero stress about it. It was like, 'We can spend as much as we want on this trip,'" he said.That sense of security that such a windfall provides was the top theme among the Nvidia investors BI connected with. It's a similar story for Chris Downs, a 66-year-old who lives in rural Missouri and retired from his job as a math teacher three years ago.He's been investing for a while, but his interest in Nvidia began when he bought a new computer for video editing at the start of the COVID-19 quarantines. Downs said he splurged on an Nvidia graphics card for his setup and was impressed. He bought 112 shares in March 2020 for $79 each. In July 2023, he sold 28 shares of Nvidia at $436 apiece to offset losses from other investments. Now he has 84 shares left, worth over $65,000 based on Monday's prices, in addition to other stocks. He said he would probably sell some of his Nvidia shares closer to the election, but he's planning to invest the proceeds for his four children, as his parents and grandparents had done for their kids.Downs said his lifestyle wasn't lavish but that he tried to travel every month. Places he's been to include Bolivia, Paris, and Mexico City, and he plans to go to Spain at the end of April.He said security was the biggest perk of his investment, as well as knowing that he could cover unpredictable financial mishaps. "It's nice in retirement not to have to worry," Downs said.

They bought Nvidia stock before the hype. It's paid for cars, vacations, and a deposit on a dream home.

<keyword id="6357560" type="General" weightage="100" keywordseo="idbi-bank" source="Orion">IDBI Bank</keyword> has introduced a <keyword id="2346698" type="General" weightage="20" keywordseo="limited-period" source="Orion">limited period</keyword> special 500 days deposit under the <keyword id="14779347" type="General" weightage="50" keywordseo="amrit-mahotsav-fd" source="Orion">Amrit Mahotsav FD</keyword> scheme, which will offer 6.70 per cent <keyword id="6371181" type="General" weightage="20" keywordseo="interest-rates" source="Orion">interest rates</keyword>. Further, a special bucket of 500 days for US dollar designated FCNR (B) deposits is also introduced offering a peak rate of 3.63 per cent. Meanwhile, the bank has also revised the interest rates on term deposit across various tenors with effect from Monday. The bank is now offering the highest rate of 6.55 per cent on select tenors. Most banks are increasing their deposit rates for boosting deposit to support rising credit off-take as liquidity in the banking system has narrowed. The hike in deposit rates are in line with the <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword>'s 50 basis points hike in repo rate in the August monetary policy. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/nft-transactions-to-reach-40-mn-globally-in-5-yrs-amid-scam-threats-report/articleshow/93704271.cms">NFT transactions to reach 40 mn globally in 5 yrs amid scam threats-report</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/pulses-like-urad-moong-arhar-and-oil-seeds-could-get-pricier/articleshow/93702821.cms">After rice, cereals and pulses could get pricier</a>

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They bought Nvidia stock before the hype. It's paid for cars, vacations, and a deposit on a dream home.

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