Data from the Reserve Bank of India website shows aggregate deposits in the banking system grew a mere 6.7% in 2017-18, the lowest since fiscal 1963.
Bankers said Indian issuers have to temper their expectations or look for alternative sources of funding.
The set of four papers released on Wednesday includes one authored by Monetary Policy Committee (MPC) member and RBI executive director Michael Patra.
Before this change, FPIs were only permitted to invest in corporate bonds with minimum residual maturity of three years or above.
For housing finance companies, this makes access to foreign funds simpler.
Non interest income or fee income growth was a tad slower at 13% to Rs 1,421 crore.
On Wednesday, the rupee ended at 66.90 per dollar — the lowest level since February 23, 2017.
Deposit rates in the two years to 1 day up to five years which were so far yielding 6% interest will now give depositors 7% interest, a jump of 100 basis points, the bank said.
The 2015 housing-for-all scheme provides a 4 per cent interest rate subsidy for people with annual income of Rs 18 lakh or below.
In a notice served earlier this month, all banks were asked to pay service tax, penalties and interest on free services offered to customers.
- No blogs yet have been written by the author, we’re sure the author will contribute one soon