Thursday, August 1, 2013

HDFC Bank, Axis Bank raise fixed deposit rates by up to 4%

New Delhi: Aug 01 2013(7STARNEWS)Faced with a tight liquidity condition, two leading private sector banks HDFC Bank and Axis Bank have raised fixed deposit rates by up to 4 per cent, a move which may be followed by others.

Country\'s second largest private sector lender HDFC Bankhas raised fixed deposit rates by 1 per cent for maturities between 15 days to 6 months one day effective July 27, as per information available on its website.

The bank has increased the interest rate by 0.75 per cent for maturity buckets less than 1 year but over 6 months one day. Axis Bank has raised interest rate on term deposits with maturity between 14-29 days by 4 per cent to 8 per cent, while in case of 7-14 days the increase is by 3.5 per cent to 7.5 per cent on bulk deposits above Rs 1 crore, effective today.

At the same time, the bank raised interest rate by 0.5 to 2.25 per cent across the various maturities less than one year but over 29 days, as per Axis Bank website. Yesterday, private sector Yes Bank had raised lending and deposit rates by up to 0.5 per cent.

The bank revised upwards its base rate, or minimum lending rate, by 0.25 per cent 10.75 per cent. The bank also revised its fixed deposit rates by 0.25 per cent to 0.5 per cent in select tenors.

In order to contain rupee depreciation, RBI has taken slew of measures in the past couple of weeks resulting in the tight liquidity situation for the banks. The decline of the rupee to a record low of 61.21 against the dollar on July 8 forced the RBI to take a series of unconventional measures to curtail liquidity and curb speculation.

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