ING Vysya Bank hikes lending rate by 50 bps

Private sector lender ING Vysya Bank today increased lending rate by 50 basis points while hiked deposit rates by up to 1.75 per cent.

The bank increased the ING Vysya Reference Rate (IVRR) by 50 basis points, effective September 1, 2010, the bank said in a statement.

This would make the floating rate for existing home and auto loans costlier.

The bank has also increased the term deposit rates by 25-175 basis points effective today.

It increased the interest rate by 175 basis points (1.75 per cent) to 6 per cent for term deposits of 61-91 days' tenor. The deposit rate increase is the maximum in this slab.

For 16-30 days maturity slab, the bank has effected a 25 basis-point increase to 3.5 per cent while term deposit rate with maturity between 31 and 60 days has been raised by 50 basis points to 4 per cent.

Fixed deposits between 92 to 180 days will attract 125 basis point higher interest at 6.5 per cent. At the same time 365 days term deposit has been increased by 50 basis points to 7.5 per cent.

Besides, the bank has launched ING Active Deposits, a new product which is aimed at customers who have surplus funds, on which they would like to earn higher returns but need the security of instant liquidity.

The product allows customers to decide the tenor, thus allowing them to earn better returns and enjoy the power of liquidity, with the instant withdrawal feature, it said.

The instant withdrawal feature allows a customer to withdraw the deposit either at an ATM or through a cheque. If the customer needs only a portion of the funds, ING Active Deopsit is broken only for the amount withdrawn, while the balance of the term deposit continues at the original rate, it said.