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Following deposit rate increases by After Axis Bank and HDFC Bank, Deutsche Bank AG India has raised term-deposit rates 25-150 basis points, across maturities. The bank raised deposit rates for the 271 day-one year bracket from seven per cent to 8.5 per cent.
The increase in medium-term deposits (between one and three years) was moderate— 25-50 basis points. In a statement, the bank said these deposits could be booked by individuals (domestic and non-resident Indians), Hindu undivided families, sole proprietors, societies, clubs, partnerships and companies.
The rates for non-resident external deposits were revised in the one to three-year maturity bracket. The bank said these deposits enjoyed benefits such as tax exemption in India on the interest earned, as well as principal and interest repatriability.
Banks had started increasing interest rates a day after the Reserve Bank of India (RBI) announced its first quarter monetary policy review, with HDFC Bank and Axis Bank raising deposit rates on shorter maturities and YES Bank increasing both lending and deposit rates.
Though RBI maintained status quo on rates in its policy review, the liquidity-tightening measures introduced a fortnight ago have impacted short-term rates.
