Catholic Syrian, Ktaka Bank Revise Rates

Several south India-based private sector banks have increased interest rates and reshuffled spreads for short-term deposits, following tight money market situation and to spruce up balance-sheets.

The Catholic Syrian Bank has revised its spread and interest rate since last week. The bank now offers 12.25 per cent for a 30-46 days period, while earlier the same rate was offered for 30-60 days. For 47-90 days the interest rate is 13.25 per cent.

Karnataka Bank, too, has hiked interest rate to 13 per cent for 30-90 days from 11 per cent for 30 days to one year earlier. It has also introduced a new slab of 91-364 days which will attract an interest rate of 11 per cent. For one-three years, the interest rate now will be 11.5 per cent whereas earlier the same interest rate was offered for a slab between 365 days and below three years.

 

For three years to 63 months the interest rate will be 13.5 per cent, while it carried an interest rate of 12 per cent for three year to five year period earlier. Vysya Bank has also increased the interest rate from a mere six per cent for 30-60 days to 11 per cent between 30-120 days. Between 121 days to less than one year, the interest rate will be 10 per cent, while earlier between 61-90 day it carried an interest rate of 6.25 per cent. For one year to three years, the rate will be 11 per cent whereas earlier, for 91-179 days the interest rate was 8.25 per cent.Following the trend, the Centurian Bank has also introduced new slabs. For 30-59 days, the fixed deposits will attract 13 per cent where as earlier for 30-89 days it carried an interest rate of 10.5 per cent. For 60-89 days the interest rate will be 12 per cent.

Earlier, for 90-179 days the rate was nine per cent A Centurian Bank official said certain banks were resorting to higher interest rates because of repayment obligations while others were keen to have a better balance-sheet. These rates are being offered because they carry very short-term maturity which would come to the aid of banks which are keen to present a better picture of their accounts, an official said.

A Vysya Bank official said call money rate had nose-dived and it had become necessary for banks to increase interest rates.