Home / Industry / Banking /  Sundaram Home Finance to hike fixed deposit interest rates this week

With commencing on December 1, Sundaram Home Finance will adjust its interest rates on fixed deposits for trusts, individuals, and elderly people, the firm said on Tuesday. As a result, Sundaram Home Finance, a fully owned subsidiary of Sundaram Finance Ltd, will increase the rates on deposits for 12 months by 50 basis points for trusts, individuals to 7.15%) as opposed to 6.65% before, and senior citizens to 7.50% from 7% earlier. For elderly persons, the corporation will increase the interest rates to 7.50% from 7.35% for tenures of 24 months, 7.80% from 7.65% for tenures of 36 months, and 8% from 7.90% for tenures of 48 months.

For Trusts, the interest rates have gone up to 7.15 per cent for 24 months from 7. per cent, 7. 80 per cent for 36 months from 7. 65 per cent, and 8 per cent for 48 months from 7. 90 per cent. For the general public, the rates have gone up to 7.15 per cent from 7 per cent and 7.65 per cent from 7.55 per cent for deposits made over 24 and 48 months, respectively.

"We have had a healthy inflow following the three previous upward revisions effected since June this year of over 250 crore. Depositors are likely to find this fourth upward revision attractive," company MD Lakshminarayanan Duraiswamy told to PTI.

“Our PLR is revised by 40 basis points effective November 01, 2022. Please contact your servicing branch for more details," Sundaram Home Finance has mentioned on its website.

Deposits are accepted at Sundaram Home Finance Ltd. in multiples of Rs. 1,000 with a minimum of Rs. 10,000 per account. Depositors may also use the "Auto Renewal Facility." Considering that its fixed deposit programme has received the [ICRA]AAA (Stable) rating from ICRA, Sundaram Home Finance Ltd. provides investors with attractive and secure returns on investment. And with the upcoming hike, Sundaram Home Finance will join the list of NBFCs offering higher rates and interest rates on fixed deposits for elderly residents that outpace inflation.

Sundaram Home Finance recorded a net profit of 97.5 crore during the half year ended in September 2022 on disbursements of 1,736 crore, while in Q2FY23, the firm reported a net profit of 50.30 crore as opposed to 47.26 crore reported in Q2FY22. The company declared a net revenue from operations of 273.94 in Q2FY23, against 239.96 Cr posted in the year-ago quarter.

(With inputs from PTI) 

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