Rediff India Abroad Home  |  All the sections


The Web

India Abroad

Sign up today!

Article Tools
Email this article
Top emailed links
Print this article
Contact the editors
Discuss this article
Home > Business > Business Headline > Report

Gods too feel the interest rate pinch

K Ram Kumar in Mumbai | May 08, 2004 09:24 IST

If you think that only the common man is suffering in a low interest regime, think again. Even the gods are feeling the pinch.

The conservative Tirumala Tirupati Devasthanam trust in Andhra Pradesh, accountants to perhaps the richest God in the country, is examining investment avenues to get that little extra.

The trust, which has a corpus of about Rs 2,000 crore (Rs 20 billion) parked mostly in fixed deposits with commercial banks, does not want to be adventurous by putting money directly into stocks. But the trust is not ruling out parking its ever-bloating kitty in mutual funds.

"If at least a portion of the money is invested in the gilt schemes of mutual funds, it will boost returns," said a source familiar with the development.

The investment committee of the trust will take a decision on this soon.

The annual income of the trust is above Rs 530 crore (Rs 5.3 billion). By contrast, the Ramkrishna Mission's annual income last year was around Rs 150 crore (Rs 1.5 billion).

Hundi collections (cash donation by devotees) account for roughly one-third of the Tirupati trust's income. It also earns substantial money from the sale of human hair (offered by devotees) and laddoos, apart from interest on bank deposits.

Five to six years ago, bulk of the deposits (Rs 15 lakh and above) placed by the trusts with banks fetched them 13-14 per cent returns. These deposits, placed in the late 1990s, are still earning them attractive returns (10-14 per cent).

But the earnings on new deposits are too low to meet the expenditure.

Powered by

Share your comments

 What do you think about the story?

Read what others have to say:

Number of User Comments: 5

Sub: It is peoples money

It is people's money and should be gainfully utilised for people only by way of providing basic requirements of the poor like charitable hospitals, shelter ...

Posted by Arun Prakash Aggarwal

Sub: gods are also affected

TTD should set up a residential school of international standards at Tirumala to teach Indian culture and traditions, religion, yoga, Indian dance and things like ...

Posted by rammohan

Sub: Income from Interest on Loans/Bank Deposits

Interest System is wrong and cruel. Loanees earn or suffer losses have to pay the interest, they wont get any relief. Many times all their ...

Posted by Mohamed ansari

Sub: Tirupati

Why not use portion of corpus fund to welfare measures in remote villages instead of thinking of mutual funds etc ? ...

Posted by s.vasudevan

Sub: Invest in rural development

The money managers at Tirupathi should consider developing the rural infrastructure in Andhra Pradesh. It may be worthwhile to note that most of the suicides ...

Posted by Rinsy Ansalam



Copyright 2005 India Limited. All Rights Reserved.