Even the private banks have not stayed behind in this race of offering higher rates in their term deposits. Private sector lender ING Vysya Bank has hiked interest rates on term deposits with different maturities. The bank is giving an interest rate of 10% on term deposits with tenure of 99 to 364 days and for term deposits of 365 days an interest rate of 11% is offered. Also senior citizens are given an additional benefit of 50 basis points on term deposits placed for any maturity above 91 days.
However there are few who have been hit by the tight monetary policy of RBI and thus they are not offering any discounts to their customers during this festive season.
HDFC Bank which usually announces many discounts during festival periods is not offering any festive offer on lending or deposit rates this season. An official from the bank said that their institution's financial position is very tight.
Allen CA Pareira, Chairman and Managing Director of Bank of Maharashtra, said, "The market is very competitive today. My bank's rates too are quite competitive. I must get funds at a cheaper rate to lend at lower interest rates. So I can't give any discount during this festive season."
It is also felt that at a time when the cost of funds is rising and liquidity not easing only a few can afford to offer festive discounts.