SBI’s return on provident fund betters pvt managers’

SBI’s return on provident fund betters pvt managers’
PTI
Comment E-mail Print Share
First Published: Mon, Apr 06 2009. 02 47 PM IST
Updated: Mon, Apr 06 2009. 02 47 PM IST
New Delhi: Government-owned lender State Bank of India has given a return of 9.7% on provident fund deposits, which is over half a percentage more than the best among the private sector asset managers during the quarter ended December 2008.
The other three private fund mangers, including HSBC AMC, ICICI Pru AMC and Reliance AMC, gave a yield of 8.5%, 9% and 9.1%, respectively, during 17 September to 31 December in 2008, an Employees’ Provident Fund Organisation (EPFO) source said.
The EPFO, manging about 4.4 crore provident fund depositors, allowed the three private fund managers to manage its incremental deposits of about Rs25,000 crore per annum in July last year. The main objective of this exercise was to see an improvement in returns on EPFO’s investments.
In the present scenario, EPFO’s return on investments, specially in central and state government securities and special deposit schemes, are not enough to pay the depositors an interest rate of over 9%.
The EPFO has invested Rs30,461 crore in central government securities, which earns a return of 7.25%, and Rs20,000 crore in state government securities and loans, which fetches 7.5% return.
Comment E-mail Print Share
First Published: Mon, Apr 06 2009. 02 47 PM IST