Depositors parking money in the 271-364 days maturity will be paid interest of 8.75% per annum against the earlier rate of 8.25%
Mumbai: In a surprising move, the South-based private sector lender Lakshmi Vilas Bank announced a 0.50 percentage point increase in deposit rates in a single maturity, reports PTI.
Depositors parking money in the 271-364 days maturity will be paid interest of 8.75% per annum as against the earlier rate of 8.25%, the bank said in a statement.
The move is contrary to the growing feeling within bankers to somehow reduce the deposit rates in order to keep the cost of funds under check, which can be further passed on to the borrowers by lowering the rates.
The country’s largest lender State Bank of India had taken the lead a fortnight back and cut its deposit rates by 0.25%, a move which was appreciated by a majority of top-level bankers, even though all others have held on to rates.
Experts cite the lower deposit growth as a factor which is pulling back banks from cutting rates on deposits.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
