Axis Bank revises deposit rates

Hikes it interest rate on certain deposits by 25 bps, while paring rates on some deposits by 55 bps

Barely a week after it increased select retail term deposit rates, Axis Bank has revised its deposit rates yet again.

This time, India’s third-largest private sector bank has raised interest rates on certain deposits by 25 basis points (bps), while it pared rates on some deposits by 55 bps. The revision is effective from yesterday.

The bank will now pay 8.75 per cent interest on deposits maturing in 15 months to less than 18 months. Earlier, it was paying 8.50 per cent on these. It has cut interest on deposits maturing in 18 months to less than five years to 8.75 per cent, from 9.30 per cent earlier.

According to bankers, the move is part of Axis Bank’s asset-liability management. The rise in select deposit rates will not limit the bank’s ability to reduce its base rate or minimum lending rate.

Axis Bank’s base rate is currently at 10 per cent, which is higher than other large private banks as well as public sector banks.