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How is your EMI calculated?!
At a constant interest rate, EMI is constant month on month. The change happens in the way the principal and interest is added every month! In the initial years of loan repayment principal is lesser than the interest component of the EMI. In the latter years the reverse is true!
CASA deposits increase for many banks
Excess liquidity present in the system along with sufficient cash available with corporates and individuals, have helped the banks to easily build their current and savings account deposits.
This share of low cost deposits is set to be under some pressure due to the large investment by corporates in the next few months as a capacity addition program and increasing interest rates.
Latest RBI figures show that the demand deposits of the banks went up by 22.88% in the fiscal just over. Time deposits went up by 16.23%.
An official of the private bank said, “While we will try to ensure that Casa stays around these levels, it is a tough task once investment picks up. But a larger branch network should help”.
The previous fiscal has seen an increase in cash flows for sectors like gems and jewellery and real estate.
This revival has helped banks like HDFC increase their CASA shares upto50%. ICICI Bank gained the most.
Rakesh Jha, deputy chief financial officer, ICICI Bank said, “We have focused on the capital market-related activities and commercial banking through the year. Those are the factors which have led to the increase in the current account level”.
But the increase in CASA shares has been comparatively less for public sector banks who usually depend on CASA and retail deposits.
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