Canara Bank hikes deposit rates by 0.50 per cent

A file picture of inauguration of an ATM of Canara Bank in Guntur. Photo: T. Vijaya Kumar.

Taking cue from other lenders, state-run Canara Bank on Friday hiked interest rates on fixed deposits by up to 0.50 per cent.

Fixed deposits in the maturity bracket of 46 days to 60 days and 61 days to 90 days would now fetch interest rates of 7.50 per cent, up from 7 per cent earlier, effective from Friday, Canara Bank said in a filing to the BSE.

For deposits above one year to less than two years, the interest rates would now be 9.05 per cent, up from 8.75 per cent. For those of five years and above to less than 8 years would now be 9.05 per cent, up from 8.75 per cent.

Additional interest rate of 0.50 per cent would be given to senior citizens for domestic term deposits, Canara Bank said.

With revision in deposit rate, the peak rate has gone up to 9.05 per cent. Term deposit between one year to up to 10 years would earn interest rate of 9.05 per cent.

Besides, state-run Punjab National Bank (PNB) has hiked interest rates on select maturities by up to 0.50 per cent effective from November 11.

Fixed deposits for less than Rs one crore between 271 days to less than one year would yield interest rate of 8 per cent, up from 7.50 per cent earlier, PNB said.

In case of maturity period of one year and above up to 10 years, uniform interest rates of 9 per cent shall be applicable, PNB said.

Earlier this week, private sector Axis Bank had revised the interest rates on select maturities for fixed deposits of less than Rs 1 crore. In two buckets there was an upward revision of 0.25 per cent and in 9 buckets a downward revision of 0.25 per cent by the bank.

The rate revision by various lenders comes after the Reserve Bank hiked interest rates by 0.25 per cent in its monetary policy on October 29.

Following this, country’s largest lender State Bank of India (SBI) and HDFC Bank hiked their base rate or the minimum lending rate by 0.20 per cent to 10 per cent.