CONNECT WITH US
Fintech

Fintech

Large banks raise FD rates by up to 50 bps; highest return at 7.55%

ET BFSI Fintech logo

Published on

Add as a preferred source on Google
Large banks raise FD rates by up to 50 bps; highest return at 7.55%

Large banks raise FD rates by up to 50 bps; highest return at 7.55%

Following the Reserve Bank of India's 25-basis-point repo rate hike in October, HDFC Bank, Bank of Baroda, Canara Bank, Indian Overseas Bank and Indian Bank are among lenders that have increased fixed deposit rates on select maturities. Several other large banks, including PNB, ICICI Bank, Axis Bank and Kotak Mahindra Bank, have also revised their deposit rate cards.

Large banks have raised fixed deposit (FD) interest rates on select tenures by up to 50 basis points following the Reserve Bank of India 's (RBI) October repo rate hike. HDFC Bank, Bank of Baroda, Canara Bank, Indian Overseas Bank and Indian Bank are among lenders that have increased rates on select maturities in October and November. Other large lenders, including Punjab National Bank (PNB), ICICI Bank, Axis Bank and Kotak Mahindra Bank, have also revised their deposit rate cards during the period. The RBI's Monetary Policy Committee raised the policy repo rate by 25 basis points to 5.50% in October, marking a shift towards monetary tightening. The rate increase followed an earlier easing cycle, during which the central bank had reduced the repo rate by a cumulative 125 basis points.

The transmission of the policy rate hike to deposit rates, however, is not uniform or immediate. Banks consider their individual liquidity positions, deposit growth, credit demand and funding requirements while deciding the rates offered to depositors. Largest private sector lender HDFC Bank has increased interest rates by up to 50 basis points on select FD tenures, effective November 4.


Source link
Related Topics:Fintech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.