SME Times is powered by   
Search News
Just in:   • Adani Group to invest Rs 57,575 crore in Odisha  • 'Dollar Distancing' finally happening? Time for India to pitch Rupee as credible alternative: SBI Ecowrap  • 49% Indian startups now from tier 2, 3 cities: Jitendra Singh  • 'India ranks 3rd in global startup ecosystem & number of unicorns'  • LinkedIn lays off entire global events marketing team: Report 
Last updated: 18 Aug, 2022  

bank-THMB.jpg Banks hike deposit rates ahead of festive season

Bank Logo generic
   Top Stories
» 49% Indian startups now from tier 2, 3 cities: Jitendra Singh
» 'India ranks 3rd in global startup ecosystem & number of unicorns'
» Tripura exported over 9K tonnes of pineapples in 2 years
» CPI inflation eases to 6.71% in July, IIP falls to 12.3%
» Rupee depreciates 12 paise to close at 79.64 against US dollar
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.

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 13 Aug, 2022
  Daily Poll
COVID-19 has directly affected your business
 Yes
 No
 Can't say
  Commented Stories
» GIC Re's revenue from obligatory cession threatened(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter