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  • Confirmation of May Layoffs at Goldman Sachs with an Average Severance Pay of $80,000

    In May, Goldman Sachs will reduce its workforce. Today, the company affirmed that it intends to refine its “pyramid” and implement its “annual performance review process”. It anticipates paying a $150 million severance fee in the process. Dennis Coleman, the CFO of Goldman, stated on 15 April’s investor call that $150 million will be spent on severance expenses during the second quarter. As it was previously reported in the media, Goldman plans to reduce its workforce by 3-4% in Q2, which translates to approximately 1,900 job losses. According to reports, Goldman is urging other VPs and managing directors (MDs) to relocate to less expensive areas like Salt Lake City, as vice presidents are anticipated to be the first to be fired. Goldman will pay severance payments of about $80,000 per person on average if it fires 1,900 employees in May. In the first quarter, Morgan Stanley laid off 2,000 employees and reported paying $144 million in severance costs, or $72k per employee. Goldman aims for an operating margin or efficiency ratio of 60%. The efficiency ratio for the first quarter was 60.6%.

    No Fundamental Shift in the Business: Solomon

    David Solomon, CEO of Goldman Sachs, also discussed the future, stating that there is no sign of a “fundamental shift” in the company’s operations since the imposition of tariffs and that any possible repercussions would probably be minor. He reaffirmed that Goldman is still a “big, diverse, strong-earning business”; he joked that this description may also work as a catchy tagline should he ever go back to his previous side profession as a DJ. This most recent round of layoffs is part of a larger trend by which international financial institutions are readjusting their workforces in response to changing business requirements and economic challenges. Although the impacted employees will surely feel unsettled as a result of the layoffs, Goldman Sachs is making a larger effort to remain flexible, profitable, and competitive in a difficult market climate.

    Layoffs have Become a Common Scenario in 2025

    With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the tech sector are not expected to halt in 2025. Companies are still cutting employees in an effort to simplify operations, save money, and emphasise automation and artificial intelligence, even though these figures are much lower than the major layoffs that occurred between 2022 and 2023. Layoffs.fyi, a website that tracks layoffs in the industry, reports that 93 organisations have laid off nearly 23,500 tech workers so far this year, and the number is still growing. Google and Microsoft are apparently contemplating a new round of layoffs, according to the most recent job reduction reports. According to reports, AI-led restructuring and performance-based terminations are part of the corporations’ goals to increase the effectiveness of their personnel.

  • Swiggy Introduces ‘Pyng’ App to Address ‘Unmet Demand’ for Expert Services

    An online marketplace named Pyng was created by Swiggy to meet the growing yet unfulfilled needs of urban customers. These customers are frequently overloaded with internet searches for trustworthy, qualified experts. Customers will be able to connect with verified professionals through the app, such as financial advisers, astrologers and spiritual experts, event planners and entertainers, travel and leisure specialists, education and skill trainers, and health and wellness specialists. According to Swiggy, it will use cutting-edge AI, a carefully selected network of professionals, and a customer-focused strategy to provide more effective and reliable access to vetted specialists.

    Vibrant Features of Pyng

    According to Swiggy, Pyng will also provide a money-back guarantee in the event that customers are dissatisfied with the service. According to the firm, Pyng, which is AI-powered, makes customers’ lives easier by making it possible to find verified specialists quickly and easily in a safe, spam-free environment. Additionally, the app will have a clever AI assistant that can comprehend customer enquiries and suggest the best expert. Pyng has been quickly onboarding professionals since launching its selling app earlier this year. With more than 1000 professionals in more than 100 specialities, Pyng wants to revolutionise the way that people get professional advice by matching them with a wide variety of experts.

    The need for professional help—from tax planners and counsellors to yoga trainers—is expanding in both the personal and professional domains as today’s lives get more hectic, according to Nandan Reddy, co-founder and head of innovation at Swiggy. With Pyng, the company provides a dependable, spam-free platform for customers to interact with professionals they can trust. In addition to empowering individual providers, Pyng connects consumers with dependable professionals that give genuine value by curating demand for these specialised products. SNACC, SwigL, Instamart, and Swiggy Minis are just a few of the apps that Swiggy has lately released.

    A recent study conducted by SAP India and Dun & Bradstreet shows how Indian start-ups use cutting-edge technology to realise their full potential. The results show that more than 77% of start-ups spend money on cutting-edge technologies like blockchain, IoT, ML, and AI. In the era of digital disruption, Indian start-ups are aggressively using cutting-edge technologies to boost customer satisfaction, spur growth, and achieve operational efficiency. This pattern highlights how quickly technology is being adopted and innovated in India’s startup scene, which is currently rated third in the world behind China and the US. The fact that 40% of digital start-ups are based in Tier II and III cities, which are becoming innovation hotspots because of local talent and cost advantages, is another important finding of this study. India’s position as a major startup powerhouse is cemented by this tech-driven development, which is backed by strong corporate governance and a supportive regulatory framework.

  • Poonawalla Fincorp Launches Gold Loan Business, Eyes Tier 2 & 3 Growth

    The company plans to strengthen its presence across Tier 2 and Tier 3 cities by opening 400 new branches in a phased approach over the next four quarters.

    Poonawalla Fincorp Limited (PFL), a Cyrus Poonawalla Group-promoted NBFC focused on Consumer & MSME Lending, has expanded its portfolio of secured lending products with the launch of its Gold Loan Business. This new offering provides a secure, fast, and transparent financing solution for individuals and businesses, catering to diverse financial needs such as business expansion, agriculture costs, and personal expenses.

    With approvals in less than 30 minutes, minimal documentation, and multiple repayment options, customers can unlock the value of their gold without selling it – ensuring financial flexibility while preserving long-term wealth.

    Commenting on the launch, Mr. Arvind Kapil, MD & CEO, Poonawalla Fincorp, said, “Our gold loan offering represents a natural progression in our secured lending portfolio, combining traditional value with modern convenience. We have designed this product with the customer journey at its core, respecting both the emotional and financial value of gold. At Poonawalla Fincorp, customer asset safety and transparency remains paramount, while delivering reliable and premium services.”

    Gold holds significant importance in Indian households as a reliable source of wealth and security, serving as a strategic asset for those needing quick access to funds. The gold loan market in India represents a substantial opportunity, with projections indicating robust growth over the next several years across both urban and rural markets. Other than being a secured business, gold loan offers the strength of low credit risk and resilience during economic uncertainty. PFL is strategically positioned to capture this growing opportunity through its customer-centric approach and commitment to delivering premium services tailored to borrowers’ needs.

    To strengthen its presence across Tier 2 and Tier 3 cities with a secured product, PFL plans to open 400 new branches in a phased approach over the next four quarters. The company facilitates loan access through its branches and localized outreach, having onboarded industry professionals to provide tailored financial solutions and enhance customer experiences across regions. 

    Built on the pillars of trust, transparency in valuation, security, and governance-first, PFL’s Gold Loan offers reliable solutions to address customers’ financial needs. The company maintains its risk-first approach to delivering timely financial solutions that bridge the credit gap while empowering customers to retain their precious assets. It remains committed to simplifying lending, creating customer delight, and enhancing experiences, which are the company’s top priorities.

    About Poonawalla Fincorp Limited

    It is headquartered in Pune and is a Cyrus Poonawalla group-promoted, non-deposit taking systemically important non-banking finance company (ND-SI-NBFC), registered with the Reserve Bank of India (RBI). The Company started operations nearly three decades back and is listed on the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE).

    The Company’s identity “P” stands for Passion, Principles, Purpose, People and Possibilities. The company has widespread coverage across 18 states and 2 Union Territories and has an AUM of approximately INR 35,550 crore as of March 31, 2025. It employs around 2,560+ people as of December 31, 2024. The company’s financial services offerings include pre-owned car finance, personal loans, loans for professionals, business loans, loans against property, machinery loans, education loans, commercial vehicle loans, and shopkeeper loans.

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  • Innopay Technologies Partners with MMTC-PAMP to Launch Digital Gold Platform

    Innopay Technologies, an emerging leader in BBPS payments, announced its collaboration with MMTC-PAMP to launch Innopay Gold, a platform for accumulating 99.99% pure 24K digital gold. Investments can range from as little as INR 2 to as much as INR 1,00,000 per day, offering individuals the opportunity to develop regular saving habits while earning an additional 2% in gold on every purchase.

    Gold is a reliable asset for wealth preservation and growth. Innopay, together with MMTC-PAMP, has created a platform that makes gold savings both secure and accessible, blending advanced technology with the enduring value of gold. The platform provides a smooth user experience, allowing users to buy and sell gold instantly, with no lock-in period, ensuring gold investments are more flexible and convenient than ever before.

    Speaking on the launch, Puvvada Venugopal Naidu, Founder and CEO of Innopay Technolgies, said, “We are thrilled to introduce Innopay Gold in collaboration with MMTC-PAMP, transforming how people engage with digital gold. This partnership combines our innovative approach with MMTC-PAMP’s legacy of trust, offering users a straightforward and secure way to create wealth.”

    “This partnership with Innopay will bring Asia’s purest gold to users at the click of a button. MMTC-PAMP’s state-of-the-art technology facilitates instant dealing in precious metals at live international prices, that too 100% backed by physical metal in bank-grade, fully insured vaults backed by an independent trustee,” said Harshit Gupta, Head, Digital Consumer Business at MMTC-PAMP, India.

    About Innopay Technologies

    Innopay Technologies, a leading fintech company in India, is transforming payments with its super-app, offering a wide range of convenient services. With over 5 million downloads and a portfolio featuring more than 24 services, including FASTag, mobile recharges, insurance, utility bill payments, DTH payments, and more, Innopay Technologies has established itself as a trusted platform for fast, secure, and rewarding transactions. Ranked 9th among the agent institutions in Bharat Connect (BBPS), Innopay Technologies processes transactions worth INR 100 crore per month, with a cumulative transaction value exceeding INR 500 crore.

    About MMTC-PAMP

    A joint venture between Switzerland-based bullion brand, PAMP SA, and MMTC Ltd, a Government of India Undertaking, MMTC-PAMP seamlessly marries Swiss excellence with Indian insights. MMTC-PAMP India Pvt. Ltd. is internationally recognized as an industry leader for bringing global standards of excellence to the Indian precious metals industry. MMTC-PAMP has received several awards since its inception from local and global industry bodies for the transparency and sustainability that are rigorously upheld in sourcing, refining and supply of precious metals in the Indian market. MMTC-PAMP is the only LBMA-accredited Gold & Silver refinery in India and is accepted across global commodity exchanges and central banks.

  • To Fill the Gap in Green Financing, TapFin Introduces GoGreen Capital

    In order to provide funding options for cleantech companies, fintech company TapFin has launched a new NBFC subsidiary, GoGreen Capital. According to a statement from the fintech startup, the NBFC will provide tailored finance options for sustainability-driven projects to startups, small enterprises, original equipment manufacturers (OEMs), engineering, procurement, and construction (EPC) firms, and others. GoGreen Capital will initially concentrate on serving borrowers in the solar, battery circulatory, and clean mobility industries. According to a release from TapFin, “GoGreen Capital will offer leasing solutions, business loans, and commercial asset loans that are specific to the clean mobility, battery, and solar ecosystems.” TapFin, a fintech startup founded in 2023 by Aditya Singh, Pramod Marar, and Terniza Berry, provides business loans, supply chain financing, insurance, and other services for the cleantech industry. Speaking to a media outlet, Marar said that the company requested an NBFC licence after obtaining a $4 million seed round from Elevar Equity the previous year. The company eventually received the NBFC licence. In the past few months, the brand has been working to establish the budget, systems, personnel, policies, procedures, and, of course, money.

    How NBF will Benefit TapFin?

    To provide loans to borrowers, the NBFC will make use of TapFin’s data-driven underwriting and contextual credit evaluations. These evaluations are founded on non-traditional insights, including battery analytics, fleet operations, ecosystem alliances, and vehicle usage patterns. With the establishment of the NBFC, TapFin will be able to lend money from its own books, build an asset base, and lessen its reliance on outside platforms. In order to reach tier-II and tier-III cities, GoGreen Capital is also seeking to partner with financial institutions to broaden its green financing options, including co-lending opportunities. In addition, the startup announced that GoGreen Capital will leverage ‘TapFin Hub’, which is TapFin’s proprietary platform. This platform’s core capabilities include OEM and supplier whitelisting, real-time asset management and monitoring through advanced AI models, portfolio valuation, and disposal monetisation. Together, these features will enable GoGreen Capital to achieve a more innovative and expedited go-to-market.

    India’s Fintech Startup Witnessing Decline in Funding

    Fintech funding has decreased in the first quarter of 2025 due to macroeconomic difficulties and geopolitical headwinds (January-March). A total of $366 million was raised in the first quarter of 2025, which is 35% less than the $571 million raised in the same quarter the previous year. According to market research platform Tracxn, the fintech industry raised a comparable amount of money ($365 million) in Q4 2024. Early-stage funding decreased by 41% from $157 million raised in Q4 2024 to $92.6 million in the March quarter, a 56% fall from $210 million in Q1 2024. $45.9 million was raised for seed-stage finance, which is 39% less than the $75.5 million raised in Q1 2024 and 16% less than the $54.6 million raised in the preceding quarter.

  • Capital-A Partners with SanchiConnect to Launch MaXcel, a New Manufacturing Startup Accelerator

    The program will offer an overall INR 18-20 crore in fast-track funding, tailored go-to-market support, and strategic mentorship to 5–6 selected ventures.

    Capital-A, an early-stage B2B-focused venture capital firm, has partnered with SanchiConnect, India’s leading deeptech ecosystem platform, to launch MaXcel, a first-of-its-kind accelerator dedicated to startups and MSMEs building in the manufacturing and allied sectors. MaXcel is backed by Capital-A’s years of investing in the manufacturing sector and supported by SanchiConnect’s extensive network of incubators, investors, and corporates.

    MaXcel will focus on early-stage startups building in precision manufacturing, advanced materials, semiconductors, IoT, frugal industrial automation, robotics, smart factory systems, and hardware-software integration. The program is open to startups with a minimum viable product (MVP), pilot traction, or early revenue and is designed to offer funding and meaningful pathways to scale.

    While manufacturing contributes approximately 13% to India’s GDP and employs over 27 million workers, the sector remains underrepresented in venture capital. MaXcel aims to address this disparity by backing emerging startups in the manufacturing space that are capital-efficient, have defensible technology, and are poised to play a pivotal role in India’s transition toward world-class manufacturing.

    Shortlisted startups will receive INR 3–4 crore in fast-track funding, with term sheets issued within 30 days. The 24-week program also includes a structured 12-week go-to-market module featuring direct connections with corporates, pilot opportunities, and participation in an offshore global demo day. In addition, founders will benefit from dedicated one-on-one mentoring sessions with functional experts, industry veterans, and successful entrepreneurs.

    Speaking about this, Ankit Kedia, Founder and Lead Investor, Capital-A, said, “We are thrilled about MaXcel and its potential to catalyse the next wave of innovation, that will come from the shop floors, factories, and industrial corridors of India. Capital-A’s deep manufacturing experience along with  SanchiConnect’s widespread access to the ecosystem, MaXcel will serve as a launchpad for founders building in the sunrise  manufacturing sector.”

    Adding further, Dr Sunil Shekhawat, Co-founder, SanchiConnect, said, “This collaboration is about reimagining what’s possible when innovation meets execution. MaXcel isn’t just a program but a catalyst for the next generation of industrial leaders.”

    As part of the MaXcel launch, a multi-city roadshow and meetup series is being organised across India, covering key manufacturing and innovation hubs such as Bangalore, Pune, Ahmedabad, Indore, Guwahati, Coimbatore, Kochi and Noida. These events aim to engage with MSME founders, regional ecosystem enablers and government partners, building awareness and driving high-quality applications to the program.

    With India positioning itself as a global manufacturing hub under the China+1 strategy and bolstered by policies like the Production Linked Incentive (PLI) and Design Linked Incentive (DLI) schemes, MaXcel aims to support a new wave of the Indian industrial revolution with global relevance.

     MaXcel will be inviting startup applications until May 10, 2025.

    About Capital-A

    Established in 2021 by renowned industrialist Ankit Kedia, Capital-A is a pioneering early-stage venture capital firm that champions the advancement of startups across diverse sectors, including manufacturing, climate, deep tech, fintech, and other tech-enabled businesses. With a clear focus on enterprise businesses and scalability,  the firm’s second fund targets a corpus of Rs. 400 crore. The firm has already backed over 25 innovative startups, including Agrileaf Matchlog, Leumas, Rooter, Riskcovry, and Tan90, and continues to unlock both tactical and long-term value for its portfolio companies.

    About SanchiConnect

    SanchiConnect is India’s leading early to growth stage B2B deeptech startup ecosystem platform connecting startup founders, incubators, corporates, industry experts and institutional investors through tech-driven matchmaking and accelerator programs.

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  • A New Code of Conduct Introduced by the India Influencer Governing Council

    Industry stakeholders have united to propose a self-regulatory organisation (SRO) just a few months after reports emerged that the government was considering the implementation of a code of conduct for social media influencers. The SRO, also known as the India Influencer Governing Council (IIGC), is made up of representatives from influencer marketing firms, content producers, and digital platforms such as Google, Meta, and JioHotstar, as well as significant advertisers. In order to guarantee that influencers’ content is “legal, honest, transparent, and respectful of societal values”, the council has published an 89-page “code of standards”. According to the document, the framework will also try to safeguard responsible content creation, safeguard consumer interests, encourage equity in influencer marketing, and stop harmful or deceptive messages. Members of the body are not legally bound by the standards.

    Code of Conduct has 20 Sections

    The 20 sections of the IIGC’s code of conduct cover some of the major issues that India’s influencer ecosystem faces. These issues include measurement metrics, AI influencers, payment compliance, the legitimacy of the products being promoted, sexual content and nudity, prohibitions on alcohol and gambling, data privacy, and customer redressal, among other things. According to reports, the IIGC had a meeting in Mumbai to talk about the problems facing the creative economy. At the occasion, the council unveiled the first-of-its-kind Indian Influencer Ratings, a weekly list that highlights the “most impactful influencers and brand campaigns” in India. According to reports, IIGC founding member and Publicis Content MD Hari Krishnan stated that the council was established to address the main issues facing the influencer market, such as a lack of standards, brand control, and creator inexperience. The council is creating a decentralised self-regulatory organisation with representation from all areas of the ecosystem, Krishnan continued. The code is intended to discourage unethical behaviour while rewarding ethical innovators.

    SRO to Extend Similar Guidelines for Other Domains as Well

    The report states that SRO intends to soon provide such standards to agencies, platforms, companies, and even consumers. This development closely follows podcaster Ranveer Allahbadia’s contentious remarks. After this, rumours circulated that the Centre was considering implementing a system to monitor social media influencers with more than 50 lakh followers. The proposed guidelines, which will be announced by the Ministry of Information and Broadcasting, are intended to prevent the dissemination of offensive and vulgar content. Online celebrities may be required to designate ratings to their content and include disclaimers as necessary under the new regulations.

  • Jaipur Resort Receives INR 2.66 Crore “Wrong” GST Notice, Lodges Formal Complaint Against OYO

    After getting GST show cause notifications totalling INR 2.66 Cr, a resort in Jaipur is said to have filed a formal complaint against OYO and its co-founder, Ritesh Agarwal. According to a media report, Madan Jain, who works for Samskara Resorts, filed a formal FIR at the Ashok Nagar police station in Jaipur last week. The complainant claims that OYO gave “inaccurate information” that led to the notices. The FIR cites a number of people in addition to OYO and Agarwal for criminal conspiracy, forgery, cheating, and criminal breach of trust under the Bharatiya Nyaya Sanhita (BNS). According to the FIR, on April 18, 2019, Samskara Resorts in Jaipur and OYO inked a 12-month contract. The resort says it paid the GST owed because it saw commercial transactions worth INR 10.95 lakh during that time. In addition to the penalty, the FIR alleges that OYO made reservations with Samskara for INR 22.22 Cr during the fiscal years 2018–19, 2019–20, and 2020–21, for which the GST bill of INR 2.66 Cr is still outstanding.

    20 Hotels Received Inflated Bills

    Husain Khan, head of the Hotel Federation of Rajasthan, told a media outlet that up to 20 hotels had got GST notices based on “inflated bills” that OYO allegedly provided. The Federation launched a campaign against OYO four years ago, Khan claimed, citing the company’s “poor record” with hotels. OYO, which Agarwal founded in 2012, provides corporate stays, affordable hotels, coworking spaces, vacation rentals, and casino hotels, among other things. To date, the business has collected around $4.5 billion in capital, with companies like Microsoft and SoftBank Group among its investors.

    Financial Outlook of OYO

    Agarwal informed staff via email a few weeks before the FIR that the startup was on course to record a 60% year-over-year (YoY) revenue growth in the fourth quarter (Q4) of the fiscal year 2024-25 (FY25) to INR 2,100 Cr. In the email, Agarwal stated that the effective merger of G6 Hospitality, which increased the company’s revenue by INR 275 Cr, was a major factor in this performance. After a net loss of INR 1,286.5 Cr in the previous fiscal year, OYO recorded its first profitable year in FY24 with a net profit of INR 229 Cr. Revenue, however, decreased 1.3% from INR 5,463.9 Cr in FY23 to INR 5,388.78 Cr in the reviewed year.

  • Cricketer Rinku Singh Invests INR 1.9 Cr in BeastLife at INR 120 Cr Valuation

    • The funds will be used to expand BeastLife’s product line, enhance R&D & scale distribution with a focus on delivering high-quality, science-backed supplements tailored for athletes & fitness enthusiasts across India.
    • The brand’s equity split includes Gaurav Taneja holding a 40% stake, Raj Gupta holding 15% and Varun Alagh holding 30% & 15% ESOP.

    Indian cricketer Rinku Singh has invested INR 1.9 crore in sports nutrition startup BeastLife, valuing the company at INR 120 crore.

    The funds will be used to expand BeastLife’s product line, enhance R&D, and scale distribution, with a focus on delivering high-quality, science-backed supplements tailored for athletes and fitness enthusiasts across India.

    The brand’s equity split includes Gaurav Taneja holding a 40% stake, Raj Gupta holding 15% and Varun Alagh, Co-Founder of Mamaearth, holding 30% and 15% ESOP. The company faces competition from other fitness brands like MuscleBlaze, Optimum Nutrition, GNC etc.

    “BeastLife stands for something bigger than just supplements. It’s about creating the finest products with top-quality ingredients, backed by science and integrity. What really drew me in was the brand’s vision to make world-class sports nutrition accessible in India. That’s something I believe in deeply and am proud to support,” said Rinku Singh.

    Raj Gupta, Co-Founder & CEO of BeastLife, commented, “Rinku’s belief in BeastLife goes beyond just a partnership. He aligns with what we’re building and wants to help shape the future of fitness in India. His support is a huge validation of our purpose.”

    Gaurav Taneja, Co-Founder of BeastLife, added, “Rinku embodies everything BeastLife stands for discipline, performance and authenticity. This partnership is a big step in making science-backed, athlete-approved supplements a household name in India.”

    Co-founded in 2023 by fitness influencer Gaurav Taneja and entrepreneur Raj Gupta, BeastLife has swiftly established itself as a trusted name in India’s growing fitness market. Within just over a year, the brand claims to have recorded INR 50 crore in gross merchandise value (GMV) and turned EBITDA-positive. Currently, it is on track to achieve an annual recurring revenue (ARR) of INR 80 crore while keeping performance marketing spending efficiently capped at 15%.

    BeastLife offers a range of premium sports nutrition products, with flagship offerings like the Pro Concentrate Whey Protein featuring Ultrasorb Tech, designed to optimize muscle recovery and athletic performance. The brand emphasizes clean formulations, top-tier ingredients, and scientific validation to meet the demands of India’s new-age athletes.

  • RBI Repo Rate Cut Impact: SBI, HDFC Bank, Others Slash FD Interest Rates

    In a recent move, the Reserve Bank of India lowered the repo rate by 25 basis points to reach 6%. The banks responded quickly, trimming their fixed deposit (FD) interest rates in short order across a range of tenures. The shift is now pretty much where you want it, aimed at liquidity, and looking to stimulate through an accommodative policy stance that makes retail banking products a little less attractive.

    SBI, BOI Lead the Rate Reduction

    The largest lender in India, the State Bank of India (SBI), has declared a decrease of 10 basis points in FD rates for deposits of under INR 3 crore, effective April 15, 2025. For time deposits of 1-2 years, the interest rate is now 6.70%, down from 6.80%. For fixed deposits with maturities between 2 and 3 years, the interest rate is now 6.90%, decreased from the previous rate of 7.00%. Senior citizens continue to earn 50 bps more under the “SBI We-Care” program, which offers preferential rates for time deposits.

    Bank of India (BOI) has done one better and cut FD rates by a further 25 basis points. The rate for 1-2 year deposits, for example, is now at 6.75% (down from 6.80%). For short-term deposits (tenure 91 days to 1 year), the bank has also slashed rates; and it has done away with its high-yielding 400-day scheme that offered a premium of 7.30% before this cut was announced.

    Private Banks Adjust Long-Term Rates

    The private sector behemoths HDFC Bank and Yes Bank have also followed the trend of cutting rates. HDFC Bank has cut rates for its longer-term deposits by 35 to 40 basis points, which affects deposits that mature in 2 years and 11 months and 4 years and 7 months. Yes Bank has made a uniform cut for FDs that mature between 12 and 24 months. All of this demonstrates the wider industry ripple effect of the central bank cutting rates.

    PNB and Canara Bank Fine-Tune Offerings

    Other public sector players, such as Punjab National Bank (PNB) and Canara Bank, have also made adjustments to their FD rates. While PNB maintains an offering of up to 7.10% for its 390-day deposit, Canara Bank made some trims to its select suite of rates, with the most notable being a reduction of 20 basis points to some of its terms (not including the 444-day FD). However, the offer with the bank that stands out is still the 444-day FD at 7.25%. This sky-high rate, if you want to call it that, is still a very attractive option for not just long-term savers but also for senior citizens, who are receiving an extra 50 basis points on what is an already elevated rate.

    As fixed deposits across the board have seen their rates softening, it is high time that we took a step back and re-evaluated our income strategies. Broadly, our financial advisors have suggested looking more towards short-duration debt funds and even some kind of niche deposit scheme that might be yielding better than the kind of fixed deposits we are used to. The distance we seem to be from the next rate hike entails that our fixed deposit returns might be compressed even further for the kind of time frame we might have considered a “safe” space.