The Hindu Business Line : Public sector banks

The Finance Minister, Mr P. Chidambaram's anguish over poor deposit mobilisation by PSBs does not take into account the fact that the return on deposits ceased to be attractive ever since interest rates were cut drastically by the previous government.

The increasing cost of living calls for increase in interest on deposit rates to compensate for the loss, at least partially.

The less said the better of the plight of pensioners who solely depend on interest.

People continue to deposit their savings in PSBs because they believe that nationalised banks are safer than private ones, even though the interest offered by the latter is higher.

K.V. Seetharamaiah

Bangalore

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
`Policy is the key to wind power' — Mr Ramesh Kymal, MD, NEG Micon (India) and Chairman, Indian Wind Turbine Manufacturers Assn

Money in the air

Revising the IPO norms

The burden of farmers' debt

Unheard of outcomes

A review of the economy — Good intentions must lead to tangible results

The ITER fusion experiment — Solution to a looming energy crisis?

Another gold rush in the making in US?

Oil price burden

Public sector banks

Green signal