Press Trust of India / New Delhi Feb 19, 2010, 17:10 IST
Country's second largest private sector lender HDFC Bank today increased fixed deposit rates by up to 150 basis points across maturities, a move that follows the Cash Reserve Ratio hike of 0.75 per cent by RBI last month.
HDFC Bank is the second lender to hike deposits rates post the credit policy review on January 29.
Fixed deposits with maturity between 3 and 10 years will now yield more with 7.5 per cent interest against the earlier rate of 6 per cent.
Interest rate for term deposits between 2 and 3 years has been raised by 100 basis points to 7 per cent from the prevailing 6 per cent interest rate.
At the same time, fixed deposits with the tenor of 366 days to 2 years has been increased by 50 basis points to 6.5 per cent except for 1 years 16 days maturity in which case the depositors will get 6.75 per cent interest rate, according to the bank's website.
HDFC Bank, which bagged ‘Best Local Bank in India’ for the second consecutive year from Euromoney last week, will provide 0.5 per cent extra over the card rate to its senior citizens customers.
To suck out about Rs 36,000 crore from the system, the RBI last month raised by 75 basis points the cash reserve ratio — the amount lenders need to keep with the central bank.
The increase in CRR comes in two tranches. The first hike of 50 basis points to 5.5 per cent will be effective from February 13. While, the second raise of 25 basis points will be from the fortnight beginning February 27.
Last week, state-run IDBI Bank hiked the deposit rates by 0.25 per cent across various maturities.
With this, rate on six months to 1 year deposit increased to 6 per cent (5.75 per cent) while that of one year to less than 500 days has been hiked to 6.75 per cent (6.5 per cent), IDBI Bank had said in a release.
Similarly, 500-days to 2 years and 2-years to less than 1,100 days maturity deposits now attracts rates of 6.75 per cent (6.5 per cent) and 7.25 per cent (7 per cent) respectively.
Content Guide
