In response to the hike in the repo rate by the Reserve Bank of India last week, Vijaya Bank today raised the interest rates on deposits offered with ‘one to less than two years’ maturity by 30 basis points from 8.50% to 8.80%. The new interest rates would be effective from Wednesday.

The bank has said in a statement that the revision is with a view to narrowing liquidity gaps under a specific maturity slab. "Our advances, like in the previous financial, continue to grow faster than the industry. This move is with a view to pace up our resource mobilisation accordingly," said Vijaya Bank CMD Prakash P Mallya.

Mallya, who was earlier Executive Director of Syndicate Bank, before taking over as Chairman and MD of VIjaya Bank, also said that suitable decision would be taken on lending rates at an appropriate time after carefully assessing trends in the market and the policy environment.

The Bangalore-based bank has fixed June 23, 2008 as the deadline to finalise the list of beneficiaries under the scheme. The bank also said that its top management team, including the chairman and general managers, is visiting the branches concerned as part of the due-diligence exercise.

Vijaya Bank was established on 23rd October 1931 by late Shri A.B.Shetty and other enterprising farmers in Mangalore, Karnataka. It was nationalized on April 15, 1980 and today the bank has a network of 913 branches that span all 28 states and 3 union territories in the country.