IDBI hikes lending rates; revises term deposit rates
February 7, 2011‐ India
IDBI has announced that it has hiked the lending rates by 50 basis points to 9.50%. The benchmark prime lending rate (BPLR) is moved upward by 0.25 per cent to 14%.
The bank has also increased its interest offering for term deposits by up to 1.25% depending on maturities. Under the revised rate structure, a 15-45-day deposit up to Rs 1 crore will fetch an interest of 4.50% per annum, up from the earlier 3.25%.
The new rates will be effective February 8, 2011.
With this, IDBI joined the group of other banks including Dena Bank, Bank of India, Union Bank of India, Indian Overseas Bank, Syndicate Bank, Development Credit Bank, Andhra Bank, SBI (FCNR deposits), Bank of Baroda which have upped their rates recently. This move of the banks is in reaction to the Reserve Bank of India's change in lending and reverse repo rates on January 25, 2011.
Indian Banking Analysts say that Indian banks have been offering a double-digit interest rate on term deposits after about a year. Lakshmi Vilas Bank was one of the first banks to do this when it upped the interest rates.
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