Andhra Pradesh

TTD’s preference for nationalised banks likely to impact its revenues

A view of Tirumala temple.

A view of Tirumala temple.   | Photo Credit: M. Prabhu

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The trust board has decided against depositing money in private banks after a controversy last year

The Tirumala Tirupati Devasthanams (TTD) trust board’s decision to deposit its earnings only with nationalised banks henceforth is likely to take a toll on its finances, which are already under strain due to providing laddus to pilgrims at subsidised prices.

The TTD, which has deposits of about ₹11,000 crore in various banks, recently deposited ₹1,400 crore in Syndicate Bank. When contacted by The Hindu, TTD Executive Officer Anil Kumar Singhal confirmed making the deposits.

However, the move is likely to impact the TTD’s earnings as the interest offered by Syndicate Bank is lower compared to other private banks.

The decision to prefer nationalised banks comes in the wake of a controversy last year after the TTD deposited ₹1,000 crore in a private bank. Though the decision to deposit the money in the private bank was taken due to the higher interest on offer, political mudslinging ensured that the management decided to play safe and not leave any scope for filing of legal cases.

The political blamegame is believed to have led to the TTD’s decision to choose only nationalised banks, even at the cost of a loss of revenue through lower interest rates which is expected to run into several crores of rupees annually.

While the private banks offer a maximum interest of 8.6% on deposits, nationalised banks offer only around 6.57% annually.

The silver lining is that the TTD prefers making short-term deposits stretching between one to two years, going by the constant fluctuations in interest rates. It also organises a meeting with all bankers once every fortnight seeking an updated report on interest rates.

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Printable version | Dec 11, 2019 9:03:51 PM | https://www.thehindu.com/news/national/andhra-pradesh/ttds-preference-for-nationalised-banks-likely-to-impact-its-revenues/article30017851.ece

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