New Delhi: Private sector HDFC Bank on Friday joined the ranks of lenders like ICICI Bank and Punjab National Bank (PNB) by hiking deposit and lending rates by up to 75 basis points.
The move by the second largest private sector lender will give better returns on fixed deposits, but will also make loans more expensive for existing customers.
The bank revised the rate of interest on domestic term deposits of various tenor upward by 25-75 basis points to tide over the tight liquidity situation in the market.
In addition, it hiked its Benchmark Prime Lending Rate (BPLR) by 25 basis points to 16.5% per annum from 16.25% with effect from today.
Interest on term deposits with a tenor of 3 years and 1 day to 5 years will now earn 8.25% interest per annum, compared to 7.5% earlier, following the 75 basis points hike, as per information available on HDFC Bank’s website.
Meanwhile, the interest rate on term deposits with a maturity period of 5 years and 1 day to 10 years will go up by 75 basis points each to 8.25%.
Furthermore, the peak interest rate on retail fixed deposits with the bank has now been increased to 8.25%.
For fixed deposits with a tenor of 1 year and 1 day to 1 year and 15 days, the interest rate has been hiked to 7.5% from 7%, while deposits with a 1 year and 16 day maturity period will attract 7.75% interest, following a 50 basis points increase.
The interest rate on term deposits of 2 years and 1 day to 2 years 15 days tenor goes up by 50 basis points to 7.75%, while the rate of interest on fixed deposits of 6 months and 17 days to 9 months and 15 days maturity has been increased by 25 basis points to 6.5%.
HDFC Bank had last revised its deposit rates upward two months ago on 11 October.
Last week, ICICI Bank also revised its deposit and lending rates upward by up to 50 basis points.
Earlier this week, the country’s biggest lender, SBI, raised interest rates by up to 150 basis points, or 1.5%, across fixed deposits of various maturities, while Punjab National Bank hiked deposit and lending rates by up to 100 basis points.
SBI now offers a maximum interest rate of 8.75% on deposits with a maturity period of 8-10 years, an increase of 100 basis points vis-a-vis the old rate. The highest rate hike of 150 basis points will be for term deposits with a tenor of 46-90 days.