HDFC Bank, Axis Bank, Yes Bank raise deposit rates
HDFC Bank, Axis Bank and Yes Bank today increased interest rates on fixed deposits with tenures of less than one year, by 0.25 percentage points to four percentage points. This could be a precursor to a hike in lending rates.business Updated: Jul 31, 2013 21:53 IST
HDFC Bank, Axis Bank and Yes Bank on Wednesday increased interest rates on fixed deposits with tenures of less than one year, by 0.25 percentage points to four percentage points. This could be a precursor to a hike in lending rates.
This came a day after the Reserve Bank of India (RBI) left interest rates unchanged and said its liquidity tightening measures will be rolled back only after stability returns to the foreign exchange market.
HDFC Bank, the largest of the three, raised its deposit rates on tenures of 46 days to six months by one percentage point from 7.5% to 8.5%.
For tenures between six months to one year, it raised deposit rates by 0.75% from 8% to 8.75%.
Axis Bank has hiked the rates most by 0.5% to 4% on deposits ranging from a below Rs 15 lakh to up to 3 crore.
Other banks, including State Bank of India and ICICI Bank, said they will wait for some more time before deciding on whether they will revise fixed deposit rates.
“This provides an opportunity for retail depositors to lock in higher rates on term deposits,” Yes Bank said in a statement.
Yes Bank has also decided to hike its base rate by a quarter percentage points to 10.75% effective from Thursday which will make lending by the bank costlier.