Lakshmi Vilas Bank trims deposit rates
By Neelima Shankar
Jul 6, 2009
Print    Email    RSS   

Scheduled commercial bank, Lakshmi Vilas Bank has lowered deposits rates on various maturity schemes.

The new rates will come into effect July 1, onwards.

With this revision, the interest rates on deposits of 271-364 days have been reduced by 100 basis points to 6.50 percent from the earlier 7.50 percent. The rates on deposits for a period of 1-2 years has been brought down to 7.50 percent from the earlier 8.25 percent, on deposits for 2-3 years to 8 percent from the earlier 8.75 percent, on deposits for 3-5 years to 7.75 percent (earlier 8.50 percent).

The revised rates on deposits for a term of five years and above, has been lowered to 8 percent from 8.75 percent.

In recent past, banks have been consecutively reducing interest rates, forced by ample liquidity and decreased credit exposure. The deposit rate cut is driven by divergence between the consumer and wholesale price indices, as explained by Usha Thorat, deputy governor, RBI - "The huge difference between consumer price index (CPI) and wholesale price index (WPI) confronts banks while reducing deposit rates."

Presently, the CPI is around 10 percent, whereas WPI hovers around (-)1.14 percent.

Lakshmi Vilas Bank Limited was founded in 1926 under the Indian Companies Act 1913. The bank obtained license from RBI in June 1958 and has a wide presence in state of Tamil Nadu, with focus on consumer banking, corporate banking and bancassurance. The net NPAs of the bank as on March 31, 2008 pegged at 1.55 percent, with a net profit earning of Rs. 25.27 Crores.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Fetch higher interest rate on your savings...
Fixed Deposits: Safest instrument to invest
Plan your tax, don’t evade it
Infrastructure bonds: another tax saving...
How to Invest to Save?

MEXING: CaℒL Giℛℒ In Hoshiarpur 09855660911...
Sakeela.CaℒL Giℛℒs In Kharar 0985566O911...
NANGAL: CaℒL Giℛℒ In Una 09855660911 Escoℛt...

Federal Bank launched V connect for its customers Feb 12, 2015
Andhra Bank on expansion mode Feb 11, 2015
Dena Bank earned a profit of 13%. Feb 9, 2015
Banks expected to cut down the rates Feb 5, 2015
RBI kept the rates unchanged Feb 4, 2015
News Archive