Morning buzz: Lenders offer high savings accounts rates, HSBC to start financing land purchases and more

Maruti Suzuki plant in Manesar. Image: Madhu Kapparath
 

Lenders offer high savings accounts rates to mop up deposits  

Mid and small size banks have started offering deposit rates of as high as 8 percent for savings accounts as they look to mop up deposits. This comes on account of an increase in loans as well as competition from larger banks which find it easier to mop up deposits on account of a more stable CASA base. Loan growth has beaten deposit growth by 600-700 bps this fiscal year.  
(BusinessLine)
 
 

Passenger vehicle sales highest in six months   

Passenger vehicle sales have crossed the 2 million mark in the first six months of FY24. This comes as SUV sales continue to rise rapidly. On the other hand two-wheeler sales are still subdued and sales of trucks were up 6.9 percent to 2.47 lakh units in September. Three wheelers also saw 47 percent growth to 74,000 units.
(Economic Times, Financial Express) 
 

Wholesale price inflation stays in negative zone  

Wholesale price inflation in India stayed in the negative zone even while sequential data showed that deflation has reduced. This comes as consumer price inflation slipped to 5 percent in September. The fall in wholesale price inflation was primarily on account of the fall in prices of chemical products, mineral oils, textiles and basic metals.  
(BusinessLine, Economic Times) 
 

HSBC to start financing land purchases  

HSBC is looking at funding real estate developers through the FPI route. This would allow the bank to finance land, projects in the pre-approval space as well as stuck projects. HSBC is assembling a team of bankers to get these proposals off the ground and is looking to be a meaningful player in the private credit space.
(Financial Express)