Kotak Bank ups deposit rates by up to 25 bps

Private sector lender Kotak Mahindra Bank today hiked its deposit rates on several maturities by up to 25 basis points (bps).

Deposits of two years and above up to and inclusive of 1,000 days, 1,002 days and above but less than three years, three years and above but less than five years and five years and above up to and inclusive of 10 years, will now bear an interest of 8 per cent, as against the earlier 7.80 per cent (up by 20 bps).

Deposits of 271 days to less than one-year have also seen a hike in rate by 25 bps, from seven per cent to 7.25 per cent.

"Interest rates have been moving upwards for the last one year. Our interest rates are in line with the market," Kotak Mahindra Bank Group Head (Consumer Banking) K V S Manian told PTI here.

The lender had hiked its base rate and BPLR (Benchmark Prime Lending Rate) by 25 bps each yesterday to 7.75 per cent and 16.25 per cent, respectively.

"The Reserve Bank has hiked its policy rates and there was a tightening of liquidity in the system. We hiked our rates in response," Manian said.

For deposits of 390 days and 700 days, the bank has increased interest rate by 25 bps each to 7.75 per cent and 8 per cent, respectively.