Morning buzz: 1.3 million new SIPs added by fintechs in November, gap between central and state government bonds widens to 2-year high, and more

Out of the 3 million new SIPs added by the mutual fund industry in November, 1.3 million were added by fintechs. Image: Shutterstock

1.3 million new SIPs added by fintechs in November

Out of the 3 million new SIPs added by the mutual fund industry in November, 1.3 million were added by fintechs. Groww, Angel One and PhonePe have emerged as top distributors. Groww opened more than 700,000 SIPs while more than 200,000 were opened by Angel One and 120,000 by PhonePe. Other players include Paytm Money with 76,000 accounts and NJ Wealth with 150,000 accounts. These platforms use SIPs to acquire customers and then cross sell their wealth management services to them.

(Economic Times)

Gap between central and state government bonds widens to 2-year high

The gap between borrowing costs of the central and state governments has widened to a 2-year high. The spread is now 54 basis points. The last time it had crossed 50 basis points was in January 2022. States are scheduled to borrow Rs 4.1 trillion in the January-to-March quarter. If they complete this borrowing then the yield gap could widen to as much as 60 basis points, according to a report by ICRA.

(Business Standard)

Banks raise FD rates to support credit growth

Large public sector banks as well as private banks raised deposit rates to support credit growth. The rates were upped by 10-75 bps across tenures. This was done to meet credit growth requirements of 1-3 years that have been driven by a surge in retail loans. The latest has been a special 175-day deposit by Bank of India at 7.5 percent. This is available to HNIs and corporates who can deposit a minimum of Rs 2 crore.