ET reports most banks in the cooperative sector in Karnataka are offering 1.5-2% higher interest on fixed deposits than nationalised and private sector banks.
For example, while Swarna Bharthi Sahakara Bank offers up to 11-11.5% on five-year deposits, Thyagaraja Co-operative Bank does up to 10.25% and 10% on two and five-year deposits.
By contrast, nationalised and top private sector banks offer a maximum of 9% on their fixed deposits. A 1% difference on a Rs 5-lakh deposit for five years shows a difference of nearly Rs 50,000.
However, cooperative banks are generally not forthcoming with information about their financial situation as well as often indulge in serious irregularities provoking punitive action from the RBI.
