Following the recent policy rate hike by Reserve Bank of India, many banks have raised both lending and deposit rates.
Banks had been urged by RBI to raise their deposit rates while keeping lending rates untouched so as to attract more investors. Credit growth is already is good shape whereas deposit growth has still been laggard.
Amongst lenders, Kotak Mahindra Bank has raised interest on fixed deposits by as much as 50 bps onb selected maturities. With the revisio in rates, the highest interest rate being offered now is 9.25% for the 700 day deposit.
Public sector lender, Bank of India has also increased deposit rates across certain maturities. The bank had also raised its BPLR by 50 bps this week. Base rate has been hiked by Union Bank of India taking it to 9.5% while deposit rates have been hiked by 75-150 bps.
The highest interest is being offered by the bank in its 1100 days deposit amounting to 9.15%.
Andhra Bank has raised both base rate and BPLR by 50 bps each with effect from tomorrow, February 5, 2011. The base rate of the bank now stands at 9.5% while BPLR stands at 13.75%.