The Hindu Business Line : Banks hike term deposit rates

A bank release said here that the 7-14 day deposits were now 4 per cent up from 3.5 per cent. The rate increases were mostly on short-term and medium-term deposits.

Following Canbank's new deposit rates effective from February 1, the additional interest rate offered on the deposits of senior citizens has been increased from 0.5 per cent to 1 per cent over the general rates.

Bankers said the hikes were prompted by the high credit off-take. The average credit-deposit ratio of the banking industry is currently upwards of 69 per cent and the incremental ratio over 100 per cent.

The bankers said this level of credit off-take was expected to continue through the peak season, and was partly responsible for the current tight liquidity situation.

Andhra Bank

HYDERABAD: Andhra Bank has announced an upward revision in interest rates by 15 bps and 25 bps on domestic term deposits from February 1.

The bank has retained the interest rates for 15 days to one-year tenure on both term deposits of below Rs 15 lakh as well as above Rs 15 lakh. For senior citizens, it offers an interest rate of 0.5 per cent higher for all maturity periods.

Karnataka Bank

MANGALORE: Karnataka Bank Ltd has hiked domestic term deposit rates by 25-50 basis points with effect from February 1.

A bank release said that the new rates are applicable on fresh deposits and renewals of the maturing deposits.

Senior citizens will get 7.5 per cent interest on deposits of one year to less than three years and 8 per cent on deposits of three years and above, irrespective of the quantum of deposit, the release added. - - Our Bureaus