|
|
|
Banks hike deposit rates ahead of festive season
|
|
|
|
Top Stories |
 |
|
|
|
IANS | 18 Aug, 2022
Most
banks are increasing their deposit rates for boosting deposit to
support rising credit off-take as liquidity in the banking system has
narrowed.
The hike in deposit rates are in line with the
Reserve Bank of India's (RBI) 50 basis points hike in repo rate in the
August monetary policy.
The rise in deposit will help banks to fund the demand for loans during the festive season.
"Going
forward, banks are expected to raise deposit rates for boosting
deposits to support this rising credit offtake given that liquidity is
narrowing in the banking system. Selectively, banks have already been
raising rates across certain tenures and categories," said Sanjay
Agarwal, Senior Director, CareEdge.
Bank credit growth has
remained in double digits handily outpacing the deposit growth. Whereas,
credit growth continues to be driven by a low base effect, small ticket
size loans, higher working capital requirements due to elevated
inflation, and a shift to bank borrowings on account of high yields in
the capital market.
According to the data compiled by CareEdge
showed, the largest state-owned bank, State Bank of India increased its
deposit rate by 15 basis points on deposit maturing between 180 days and
210 days from 4.40 per cent to 4.55 per cent.
For all other
tenures, the SBI FD interest rates have also been hiked by 15 basis
points. Bulk deposit rates have been increased by 25-50 basis points for
period up to one year. For more than one year, the rates have been
hiked by rates ranging from 75-125 basis points
Indian Overseas
bank increased deposit rates by 10 basis points for 444 days and 3 years
and above periods for the retail term deposits
Indian Bank and Punjab National Bank have also hiked their deposit rates 5-15 basis points.
On
the other, in the private banks, HDFC Bank increased interest rates by
around 15 basis points on fixed deposits greater than Rs 5 crore in
August. ICICI Bank increased interest rates on fixed deposits from Rs 2
crore to Rs 5 crore in August.
Kotak Mahindra Bank has also
increased rates by 15 basis points for select tenures for deposits up to
Rs 2 crore in August, CareEdge data showed.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
84.35
|
82.60 |
UK Pound
|
106.35
|
102.90 |
Euro
|
92.50
|
89.35 |
Japanese
Yen |
55.05 |
53.40 |
As on 12 Oct, 2024 |
|
|
Daily Poll |
 |
 |
Do you think Indian businesses will be negatively affected by Trump's America First Policy? |
|
|
|
|
|
Commented Stories |
 |
|
|
|
|
|
|
|