Dhanlaxmi Bank hikes retail term deposit rates

Dhanlaxmi Bank hikes retail term deposit rates

Mumbai: South-based lender Dhanlaxmi Bank on Tuesday hiked its retail term deposit rates in two baskets, taking it into double digits in one maturity.

Under the new rate slabs applicable on Tuesday, depositors will earn 10% per annum for a special 300-day term deposit, a statement issued here by the bank said.

The rate of 10% is applicable for deposits under Rs1 crore, it added.

A decision to introduce the special product offering 10% has been taken keeping in mind the present high inflation environment, the bank’s head of branch banking and NRI business Salil Datar was quoted as saying in the statement.

The rate hike comes 20 days after Reserve Bank hiked its short term rates for a record 11th time since March 2010 by a higher-than-expected 50 basis points to cool the uncomfortable inflation number, which stood at 9.44% for June.

Almost all the major banks have hiked their lending rates after the RBI’s policy announcement while some have also hiked their deposit rates.

Dhanlaxmi Bank has also increased interest rate on its 500 day deposit by 25 bps to 9.75 per annum in the hikes announced on Tuesday. This rate will be applicable for deposits of less than and equal to Rs15 lakh, the statement said.