Becoming the latest among lenders hiking deposit rates following the Reserve Bank’s monetary action early this week, private sector lender Kotak Mahindra Bank has raised its deposit rates by 0.25 per cent across majority of the maturities.
The bank has upped rates for all tenors by a quarter percentage except in 271 days to less than 1-year maturity, where the interest rate has been increased by 0.5 per cent.
Also, the rates for 7-14 days deposits has been lifted to 3 per cent from 2 per cent earlier to adjust it in line with savings deposit rate.
“We have increased deposits in majority of the maturities by 0.25 per cent in view of the RBI policy rate hikes early this week and considering the current market situations,” Kotak Mahindra Bank’s Group President, Treasury, Mohan Shenoy told PTI here.
“We are still watching the market and would take further actions if necessary,” Mr. Shenoy said. He said the hike in 7-14 days deposits was just to bring the rate close to savings account deposit rates and was not due to the hike in RBI policy rates.
A host of private and state-owned banks like Union Bank of India, Bank of India and Axis Bank are likely to up their deposit rates by 0.25-0.5 per cent in the next few days, taking a cue from the Reserve Bank’s monetary action earlier this week.
