Lower Interest Rates May See Flight Of Bank Deposits To Equity Markets: SBI

Fall in rates since 2015 has also impacted pensioners badly, says EcoWrap report

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As the Indian economy moves to a lower interest rate regime, there could be a flight of bank deposits to the equity markets as evident from the increasing participation of retail investors from April 2019, albeit with some volatility, according to State Bank of India’s research report EcoWrap.

The report underscored the trend of a relatively lower pace of increase in time deposits, compared to the participation of individuals (retail and high net worth individuals) in the NSE cash market.