New Delhi, Oct 19: The bull-run in stock markets doesn't seem to enthuse small investors much, as they preferred to put their hard-earned money in risk-free small savings schemes, which saw 27.33 per cent surge in collection to Rs 54,126 crore in April-August this fiscal. Stung by "soft interest rate regime", the average Indian seems to channelise more of their surplus into small savings instead of keeping it with banks, whose growth in deposits dipped to 11.9 per cent till august from 14 per cent in the year ago period.
Still regarded as the safest investment option by bulk of Indian population, small savings collection went up to Rs 54,126 crore in first five months from Rs 42,507 crore in April-August 2002, Finance Ministry officials told here.
Net collections, after repaying the matured schemes, surged by 18.65 per cent to Rs 24,437 crore till August this fiscal from Rs 20,597 crore in the year-ago period, they said.
In August alone, gross small savings collections zoomed by 30 per cent to Rs 10,459 crore this fiscal compared to Rs 8,045 crore a year-ago.
Net collection, after repaying the matured schemes, was up by 25 per cent to Rs 4,828 crore in august this fiscal, compared to Rs 3,867 crore a year ago, the officials said.
Although interest rates have come down across the board, small savings is still being preferred to bank deposits, mutual funds or even equities.
Not surprisingly, small savings mop up outsmarted the bull phase as reflected by the 13 per cent jump in National Stock Exchange benchmark 50-scrip index (Nifty) that surged to 1,357 points on August 29 from 1,196 on August one.
Bureau Report