Indian Bank has been able to garner over Rs. 3,000 crore by way of deposits since March this year. Disclosing this, T. M. Bhasin, Chairman and Managing Director, told The Hindu that the bank had taken a proactive initiative in the wake of the first quarter monetary policy of the Reserve Bank of India and increased the deposit rates from June 14 itself.
He said the bank's asset and liability committee met on July 10 and took note of the constrained liquidity situation post-3G and broadband payments.
The committee, he said, also observed that the growth of retail term deposits was slackening.
Consequently, the bank raised the interest rates on deposits on July 14. Accordingly, the interest rate on deposits for one year to less than two years was hiked to 7 per cent from 6.50 per cent; for two years to less than three years to 7.25 per cent from 7 per cent and for three years and above to 7.50 per cent from 7.25 per cent.
In addition, senior citizens would continue to get 50 basis points more for their deposits with the bank, Mr. Bhasin said.
Following the implementation of daily interest calculation on savings bank accounts, the bank, he said, also had aligned the short-term rate of interest on deposits up to 45 days at 3.5 per cent and for 91 days at 4 per cent with effect from June 4.
Keywords: Indian Bank