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Allahabad Bank has increased interest rates on domestic term deposits of different maturities below Rs 1 crore by 50-120 basis points. The rate hike is effective from Monday.
"As a Diwali bonanza, Allahabad Bank has decided to hike interest rates," the state-run lender said in a statement. It is one of the first few banks to increase its deposit rates following the Reserve Bank of India's (RBI) decision to hike the repo rate by 25 basis points on October 29, 2013.
The public sector bank has not announced any revision in its base rate or minimum lending rate so far. The bank's base rate is currently at 10.20%.
Allahabad Bank will now pay interest at 5-9% on domestic term deposits below Rs 1 crore across maturities. Senior citizens will continue to get additional interest at 0.50% rate.
