Query on how to decide a bank’s future prospects.

POSTED BY sangram ON January 3, 2013 7:03 pm COMMENTS (2)

Hi all,
I had a query. I was thinking of investing in a FD scheme in PMC bank(Punjab & Maharashtra Co-operative Bank).
I was impressed by their attractive FD rates. But I wanted to make a firm opinion about this bank first and so I was going through their financial highlights section. Here is that link: http://www.pmcbank.com/english/whower.aspx

But I am confused now looking at this section. Here as you can see their deposits & share capital have increased year by year but net profit has declined over the period.
So does this “net profit” term really affect any bank’s future? Since the profit margin is decreasing in this case should we make an opinion that our deposits/accounts will be at risk or the bank may be sealed by RBI in future? How to decide whether any bank is good/bad for FD/RD investment?

If you can provide an article on how to select a bank for FD investment, it will be of great help for common users who start their journey by FD/RD investment.

Thanks,
Sangram

2 replies on this article “Query on how to decide a bank’s future prospects.”

  1. sangram says:

    Hi Ashal,
    Here is their interest chart: http://www.pmcbank.com/english/PBInterestRates.aspx

    I am more interested for a FD scheme of 24 months for which their ROI is 10%.
    State bank of Hyderabad and Axis bank offers ROI of 9% and 9.25% each for that much duration.

  2. Dear Sangram, may i know the difference in attractive rates of this bank & any frontline bank?

    thanks

    Ashal

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