Dena, Federal Bank up term deposit rates

The hike in rates is to meet asset liability mismatches in the particular time buckets

Dena Bank has increased its interest rate on term deposits having maturity of one year to less than two years by 35 basis points to 9.10% from 8.75%. Federal Bank has also increased the rate on term deposits by 25-50 basis points in select maturities.

The increase is to meet the asset liability mismatches in these particular time buckets.

With all indications that the Reserve Bank of India is set to cut key short-term rates in its January 2013 monetary policy, banks are likely to cut deposit and lending rates going ahead.