INDIA, April 4, 2013 (Times of India): Tirupati's Lord Balaji continues to command a premium. Even the banks oblige the Lord of Seven Hills, said to be among the richest in the world, with higher returns for deposits. The Tirumala Tirupati Devasthanam, the trust that manages the money of the Venkateswara Temple, secured 130 basis points more returns than ordinary citizens for funds it keeps with banks. A basis point is 0.01 percentage point
Banks have agreed to pay 9.8% to the temple trust for one year, said two people familiar with the recent bids. In return, they get Rs 3,000 crore (US$550 million) of deposits that remains stable, irrespective of the financial conditions. Bankers said several banks participated in the auction, but only a few were allotted funds. Banks pay 8.50% to 8.75% to retail customers for one-year deposits
Bankers said TTD received a good rate due to the timing of the auction. It called for bids from banks just before the close of the fiscal year, when banks fall over each other to mobilise deposits. The aggressive bidding was despite a directive from the government barring PSU banks from raising bulk deposits. Last year, the finance ministry limited bulk deposits at 15% of total deposits.