Bank deposits should be brought under section 80 L

With the economic growth picking up pace and the investment cycle on the way to recovery, the banking sector has witnessed a transformation in its vital role of intermediating between the demand and supply of funds.

The revived credit offtake (both from the food and non food segments) and structural reforms have paved the way for a change in the dynamics of the sector itself. Besides gearing up for the compliance with Basel-II accord, the sector is also looking forward to consolidation and investments on the FDI front.