Kotak Mahindra Bank raises deposit rates by 0.25%

Last week again, RBI has raised its short-term lending rate (the repo rate) by 25 basis points and borrowing rate (reverse repo) by 50 basis points, as a result banks will again raise fixed deposit rates also lending rates. But banks plan to revise rates in October.

Kotak Mahindra Bank, a private sector banks has taken lead in raising its fixed deposit rates. On Tuesday bank increased the term deposit rates by 0.25%. On the other hand, on Monday Yes Bank raised its benchmark prime lending rate (BPLR) by 50 basis points to 17.5%.

Kotak Bank has revised its rates for all tenures with maturities of 1 year and above with immediate effect.

KVS Manian, group head Kotak Mahindra Bank told FE, “Our deposit rate hike only reflects the upwards interest rate bias in the market. However, we have not yet decided on hiking the lending rates. We may revise our BPLR and base rate both in the early October this year.”

Bank reported credit and deposit growth at more than 30% year-on-year basis. After revised rates for one year term deposit the interest rate is 7.25% while for five years and above, the rate of interest is 7.75%.