RBI policy move: Banks expected to raise term deposit rates gradually

Mortgage lender HDFC hiked home loan rates by 20 bps. Women can take a loan up to Rs 3 mn at 8.70%

While the Reserve Bank of India (RBI) has hiked the repo rate by 25 basis points (bps) for a second time this year, banks are expected to raise term deposit rates only gradually as liquidity in the system is fairly adequate. Deposit rates might rise by about 10 bps this quarter, said bankers.

Mortgage lender Housing Development Finance Corporation (HDFC), meanwhile, hiked home loan rates by 20 basis points. Women can take a loan up to Rs 3 million at an interest rate of 8.70 per cent, while other borrowers can avail of loans at 8.75 per cent. For loans above