IDBI, OBC raise deposit rates by up to 1.50 per cent

State-run lenders IDBI Bank and Oriental Bank of Commerce on Wednesday raised deposit rates by up to 1.50 per cent in select maturities. A raise in the deposit rate is generally seen as precursor to upping the lending rate.

IDBI Bank, which also modified its maturity offering, will now pay 8.50 per cent for a deposit of 46 days to 200 days, which is higher than the earlier rate of 7 per cent for the 46-90 days basket and 7.25 per cent for the 91 days to less than six months basket, it said in a statement.

The city-headquartered lender also hiked its interest rate offering in two other baskets by 0.25 per cent.

Oriental Bank of Commerce hiked its offering by 0.25 per cent in the one-year to-less-than two-year maturity buckt, it said in a filing with the stock exchanges.

IDBI Bank's interest rate revision is effective August 16, while the same for OBC is from August 12. The IDBI Bank statement said customers can get higher returns with no penalty for premature withdrawal along with assured liquidity.

Through a series of measures aimed at reducing the speculation on the rupee, the Reserve Bank has tightened liquidity starting July 15. This has hardened short-term rates.

In wake of the measures, private sector lender Yes Bank and foreign lender Deutsche Bank have already hiked their deposit offerings while on the lending side, Yes Bank and HDFC Bank have hiked their rates by up to 0.25 per cent.