Karnataka Bank ups deposit rates by 25 basis points to 9.25%

CEO says rates have been hiked to retain customers, extend benifits to depositors

Mangalore-based private sector lender Karnataka Bank has raised its interest rate on deposits by 25 basis points on all fresh retail term deposits with 1-2 years maturity period.

Thus, the rate of interest on deposits will move upwards from the present 9% per annum to 9.25% per annum. The new rate will be effective from March 1, 2013.

P Jayarama Bhat, Managing Director & CEO of the Bank said, “Enhancement of interest on deposits will have positive impact on resource mobilisation. Although, the liquidity position of the Bank is comfortable, interest rate has been enhanced to extend the benefit to depositors and retain customers.”