Private sector lender, HDFC Ltd has raised interest rates on fixed deposits to as much as 9.05% . Term deposits of 22 to 33 months maturity will now fetch the depositor the new set of raised interest rates.

HDFC wrote in a mail to its customers: "We are pleased to make an exclusive offer of an additional 0.25 per cent on the prevailing interest rates on HDFC Platinum Deposit Plan".

Keki Mistry, vice-chairman and managing director of HDFC, affirmed the hike as "one of our sources to raise funds".

The high rates of interest offered by HDFC are so far in competition only with State Bank of India and Punjab National Bank. These lenders are currently offering 8% and 8.25% interest respectively for deposits of same tenor.

The largest private sector lender, ICICI Bank offers 7.25% to 7.75% interest for same tenors.