Dhanlaxmi Bank ups deposit rates up to 75 bps

Following the larger players, Thrissur-based private sector lender Dhanlaxmi Bank today announced a 25-75 basis points hike in its deposit rates on all tenures up to Rs 1 crore from tomorrow, but left its lending rates unchanged.

As part of its efforts to attract more retail liability base, the bank has also announced the launch of a new term deposit scheme with a 250-day maturity.

When contacted on the lending rate hike, the bank spokesperson said, they will take a call on revising lending rates next week after the asset liability committee (ALCO) meeting. At present, its lending rate hovers around 16 per cent.

"The upward revision in the deposit rates is in line with the market trend and the emerging interest rate scenario," said Dhanlaxmi Bank branch banking and NRI services head Salil Datar in a release.

Short-term deposits with 7-14 days and 15-45 days maturity will now offer 3.5 and 4 per cent interest, respectively, an increase of 0.75 per cent, while those with 366-399 days and 400 days will get 7.5 to 8 per cent returns respectively, up 0.25 per cent. For deposits above five years and up to 10 years, the revised interest rate stands raised by 50 basis points to 8.25 per cent, Datar said in the release.

Set up in 1927, Dhanlaxmi became a scheduled commercial bank in 1977 and now operates 271 branches across 14 states.

At the end of Q1 FY11, the bank had a retail liability base of Rs 7,747 crore and an asset base of Rs 5,329 crore. Its total asset base is Rs 9,000 as of end June.