Two major public sector lenders, SBI and PNB, today hiked fixed deposit rates by up to 75 basis points, while PNB also increased its base rate - below which banks can’t lend - to 8.5 per cent. The hike is effective October 1.
However, the deposit rates for 15-45 days and 46-80 days would remain at the current level of 4 per cent. Further the rate for deposits of 181 days to less than one year would be the same at 6 per cent.
The deposits above three years also would get only the same rates now prevailing. Three years to less than 5 years 7.25 percent; five years to less than 8 years 7.50 per cent; and 8 years and up to 10 years 7.75 per cent. The rates for deposits of 91-180 days increased from 4.75 per cent to 5.50 per cent; one year to 554 days from 6.75 per cent to 7 per cent; for 555 days from 7.25 per cent to 7.50 per cent; 556 days to less than two years from 6.75 per cent to 7.25 per cent; two years to 999 days from 7 per cent to 7.50 per cent; for 1,000 days from 7.25 per cent to 7.75 per cent; 1,001 days to less than three years from 7 per cent to 7.25 per cent.
While announcing the quarterly review of its base rate, State Bank of India has decided to keep the rate at the existing level of 7.50 per cent annually.
Punjab National Bank (PNB), meanwhile, raised its base rate from 8 per cent to 8.50 per cent in response to RBI’s hike in the policy (lending and borrowing) rates for banks on September 16, and the subsequent impact on cost of deposits.
Base rate is the minimum lending rate below which bank cannot offer loans. The benchmark prime lending rate would remain intact at 11.75 per cent, PNB said in a statement.
It said that taking note of the negative real rates to the savers, in view of high inflation, interest on fixed deposit have also been increased by 25-50 basis points across various maturities.
The maximum rates offered by PNB now is 8 per cent for deposits of maturity between 8 and 10 years, while for SBI it is 7.75 per cent for fixed deposit of 1,000 days and 8-10 years.
For 1-3 years term deposit, PNB will pay 7.5 per cent interest, an increase of 25 basis points.
Fixed deposits with maturity period between 271 days to 1 year has been raised by 50 basis points to 6 per cent, while 5-8 years term deposit would attract 7.75 per cent interest rate.