Tata Consultancy Services (TCS), Infosys Technologies and Wipro, the top three software outsourcer in the country, has been parked most of the deposits (65-82%) and the national government.

In 2008 it was the fear of an economic downturn that led these companies to move their deposits to public sector banks. This time, the promise of higher returns, it is encouraging these companies to park their funds with state-run lenders.

"In our case, the majority of deposits in the public sector banks," said S Mahalingam, CFO, TCS. The exporting country's largest software does not reveal its fixed deposit accounts with various banks at regular intervals.

"There is certainly no policy, which calls us to make greater investments in public sector banks. When it comes to choosing a bank fixed deposits, is a driving factor in which the bank gives us a better result," said Mahalingam.

His views were echoed by a senior officer of Wipro, who requested anonymity because he was not authorized to speak to the media. Better prices offered by public sector banks are encouraged Wipro to increase its share of deposits in these banks to 81.1% in June 30 from 66.8% last quarter. Wipro, India's third software outsourcer parked Rs 29,654 crore of its total deposits at Rs 36,576 crore for state banks. The company parked Rs 14,843 crore of deposits in Bangalore-based Canara Bank, parked up with a single bank.

"It 'a combination of several factors such as income, and risk appetite. Even the public sector banks that we work with banks to give us a better income. Not so, the prices offered by private banks are much smaller, But when the public sector banks offer a better return, "the official said.

Infosys Technologies has a similar story to tell. While the preferred company of ICICI Bank for a total of 66.2% of their deposits held with banks. ICICI Bank is the largest percentage (11.4%) of total deposits, Infosys (Rs 14.799 million rupees). Software Outsourcing second in the country, however, preferred to Punjab National Bank, Bank of Baroda and Bank of India in any bank in the private sector.

"Our investments in deposit accounts to time deposits are led by the performance we get from the banks," V Balakrishnan, CFO of Infosys, told Business Standard earlier this month.

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The difference in the returns offered by public sector banks and private banks on wholesale deposits was not immediately known when these prices are negotiated between banks and companies as confidential. Analysts said banks need funds would be more aggressive in obtaining these funds and can offer speeds up to 25 basis points higher than their rivals.

Source: [Business Standard]