Private sector lender Kotak Mahindra Bank(KMB) has increased the interest rate on its term deposits in the general category to 10.35% per annum.

Term deposit is an amount deposited with a banking institution that cannot be withdrawn for a certain "term" or period of time.

Speaking on the decision, KVS Manian, Group Head - Retail Liabilities and Branch Banking, Kotak Mahindra Bank said, "I am confident that that this significant hike in interest rates would hugely benefit our retail customers given the current volatile market situation. This facility reemphasizes our commitment to our customers to maximize return on their savings".

The Bank also offers tech-savvy products such as the Virtual Card and Kotak BillPay, MF on Net and Call, among others, that enable customers to shop, make payments, invest, redeem funds and track portfolio. It has also kept in mind the requirements of the business community and provided solutions that include Trade Services, Cash Management Service and Credit facilities.

Bank has added a suite of simple and powerful credit cards to its portfolio of financial services. The bank's E-Tax service is another attraction where its Savings and Current account holders can pay their taxes online.

The Kotak Mahindra group has a large network of branches, franchises, representative offices and satellite offices across 370 cities and towns in India and offices in New York, London, Dubai, Mauritius and Singapore.

The company had net profit of Rs145.93 crore in the first quarter of 2007-08. Kotak Mahindra Bank has posted standalone net profit of Rs54.53 crore for the first quarter of this fiscal, up 14.39% over the corresponding quarter a year ago.