Good news: Before the festive season, these banks gave a big gift to the people, increased interest rates on deposits

Photo:India TV Good news for FD investors

Good news: Most of the banks in the country have given a big gift to the common people before the festive season. Banks have increased interest rates on deposits for different tenures. Banking sector experts say that due to low liquidity in the banking system, most banks are increasing their deposit rates to promote deposits, so as to support the increasing credit off-take. The hike in deposit rates is in line with the 50 basis points hike in the repo rate in the August monetary policy of the Reserve Bank of India (RBI).

SBI increased interest on deposits so much

State Bank of India, the largest state-run bank, has increased its deposit rate from 4.40 per cent to 4.55 per cent on deposits maturing between 180 days and 210 days, according to data compiled by CareAge. For all other tenors, SBI FD interest rates have also been hiked by 15 basis points. Bulk deposit rates for tenors up to one year have been increased by 25-50 basis points. For more than a year, rates have been hiked by 75-125 basis points.

These banks also increased the interest rate

Indian Overseas Bank increased deposit rates for retail fixed deposits by 444 days and 10 basis points for tenors of three years and above. Indian Bank and Punjab National Bank have also increased their deposit rates by 5-15 basis points. On the other hand, in the private sector, HDFC Bank has increased interest rates on fixed deposits above Rs 5 crore by about 15 basis points in August. ICICI Bank has hiked interest rates on fixed deposits of Rs 5 crore from Rs 2 crore in August.

Kotak also increased the interest rate

Kotak Mahindra Bank has also increased rates by 15 basis points for select tenures for deposits up to Rs 2 crore, according to data compiled by CareAge. Let us inform that RBI had increased the repo rates in the first week of this month. After this many banks and NBFC institutions have increased the interest rates of FD.

Will help in meeting the loan demand

The increase in deposit rates will help banks meet the credit demand during the festive season. Going forward, banks are expected to raise deposit rates to support this growing credit off-take, said Sanjay Agarwal, Senior Director, Care Edge. Liquidity in the banking system is decreasing. Selectively, banks are already raising rates across certain tenors and categories. Bank credit growth remains in double digits, easily outpacing deposit growth. Whereas, credit growth has been driven by changes in bank lending due to lower base effect, smaller sized loans, higher working capital requirements due to high inflation and higher returns in the capital market.

Latest Business News

function loadFacebookScript(){
!function (f, b, e, v, n, t, s) {
if (f.fbq)
n = f.fbq = function () {
n.callMethod ? n.callMethod.apply(n, arguments) : n.queue.push(arguments);
if (!f._fbq)
f._fbq = n;
n.push = n;
n.loaded = !0;
n.version = ‘2.0’;
n.queue = [];
t = b.createElement(e);
t.async = !0;
t.src = v;
s = b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t, s);
}(window, document, ‘script’, ‘//’);
fbq(‘init’, ‘1684841475119151’);
fbq(‘track’, “PageView”);

window.addEventListener(‘load’, (event) => {
}, 7000);

Back to top button