HDFC Bank hikes FD, lending rates

There's good news for those who are risk-averse and prefer to keep their money in bank fixed deposits (FDs). From Monday, HDFC Bank will pay a higher interest rate for FDs of more than 45 days. The bank has hiked FD rates by up to 100 basis points (100 basis points = 1%), sources said.

The bad news, however, is that the leading private sector bank has decided to hike lending rates by up to 75 basis points, also effective Monday. This implies that existing and new customers of auto and personal loans will need to shell out more. Corporate loans will also become more expensive. However, home loan customers won't be affected since they are tied to lending rates of HDFC which were last revised on March 1.

Over the past one year, the rising rate of inflation has compelled banks to hike rates by about 500 basis points in some cases. Top bankers say that by all indications, interest rates have not peaked yet. The RBI policy review scheduled for this week could see another round of hike in key rates, putting pressure on banks to go increase rates further.

According to the hiked FD rates, HDFC Bank will pay 9.25% annual rate of interest for FDs of two years 16 days to regular customers, while senior citizens will earn 50 basis points more, i.e. 9.75% in this case. For every tenure, senior citizens will earn 50 basis points more than regular depositors. The steepest hike in rates will be in the shorter tenure of 46-90 days, where the new rate will be 5%, up from 4% earlier.

HDFC Bank has also decided to hike its base rate by 50 basis points to 8.70% per annum while its new prime lending rate (PLR) will be 17.25%, up from 16.50% earlier. Surprisingly, HDFC Bank is hiking its base rate within a month of its last hike. On February 24, the bank had hiked its base rate from 8% to 8.20%. However, the hike in bank's PLR is coming after about three months. The last time it had hiked its PLR was on December 10.

For information visit to: http://www.fixeddepositindia.blogspot.com

Source - Times of india

BoI raises fixed deposit rates by up to 75 basis points

State-owned Bank of India today raised fixed deposit rates by up to 75 basis points on select maturities.

The bank has decided to revise the interest rate ranging from 25 basis points to 75 basis points on various domestic term deposits schemes with effect from March 10, 2011, BoI said in a statement.

For 91-179 days term deposits less than Rs 1 crore, the bank will pay 7(%) per cent interest, up 75 basis points from the existing rate.

At the same time, interest for 270 days to one year term deposits has been raised by 50 basis points to 8(%) per cent while interest rate for fixed deposits with maturity period between 1-2 year has been raised by 25 basis points to 9(%) per cent.

Banks have been raising interest rates following a 0.25 per centage point hike in short-term lending (repo) and borrowing (reverse repo) rates announced by the Reserve Bank in its third quarterly monetary policy review last month.

Source - Economics Times

Mahindra & Mahindra Financial Services invites FD from public

Mahindra & Mahindra Financial Services,a non-banking finance unit of auto major Mahindra & Mahindra, has invited fixed deposits from the public, for the first time after 3 years.

The minimum amount which an investor can invest is Rs 10,000. This is in line with a recent trend where various conglomerates, including the Tatas, have invited the public for fixed deposits, as traditional sources of funds are drying up. The fixed deposits have been rated as FAA+ by CRISIL, which indicates high safety. The yield on a 3-year fixed deposit interest rate is 13.5%. The rates are 11%, 11.5% and 12% for 12 months, 24 months and 36 months respectively.

MMFSL provides Finance for utility vehicles, tractors and cars with a focus on rural areas. It currently has a network of 442 offices and total assets under management of Rs 8,303 crores. It had a net profit of Rs 177 crore in March 2008.

Source: Economictimes

DCB revises fixed deposit rates

DCB the listed state of the art bank, has announced a change in interest rates on its fixed deposits with maturities of one year and above. Interest rates on fixed deposits for one year maturity have been fixed at 10.50%. While for One to Three years the FD rate is 10.25%.

In order to offer choice to its customers, bank has ensured very competitive Fixed Deposit rate across all tenures. In line with this strategy, the Bank has effected only a very small cut of 25 basis points for fixed deposits with a maturity of one year (365 days), which stands readjusted from the earlier 10.75% to 10.50%.

In a statement, Mr. Praveen Kutty Executive Vice President and Head Consumer Banking Group DCB, stated, “The interest rate environment has softened in recent time. DCB remains committed to offering value to its depositors and customers. We have used this opportunity to realign our fixed deposit interest rates in line with our growth strategy. We believe DCB is offering the most competitive deposit rates in the industry for deposits of One year to Three years. DCB customers will benefit from their relationship with the Bank”. The interest rate slabs are effective from February 10, 2009. DCB offers a full suite of Fixed Deposits, and value added Savings account products for the retail customer.

Source:moneycontrol.com

South Indian Bank’s new fixed deposit scheme

The South Indian Bank, will be launching a new fixed deposit scheme “SIB Eighty Plus” to commemorate its 80th year celebrations.

Addressing presspersons here on Thursday, deputy general manager and head of Bangalore region of the bank Thomas Joseph K said SIB Eighty Plus offered its customers 11 per cent fixed deposit interest rate per annum for 39 months on a minimum deposit of Rs 50,000. As an additional benefit, the depositors would be provided with a free personal accident death insurance cover up to Rs. 1 lakh.

The scheme would offer 11.25 per cent interest to senior citizens.

“The depositor on maturity of a deposit of Rs. 50,000 would get Rs 71,143, while a senior citizen will receive Rs 71,707,” he said. The deposit for domestic and non-resident ordinary accounts would be accepted till March 31, 2009, he added.

The bank will be celebrating its 80th year of existence with a function in Bangalore on January 24.

The Regional Director, Reserve Bank of India, will inaugurate the celebrations while chairman of the bank G.A. Shenoi will preside over the function. Mr. Thomas said the will complete 50 years of service to Karnataka on June 29, 2009.

The bank has got a CBS branch network of 31 branches and 11 ATM centres in Karnataka. I

n Bangalore, the bank has opened five branches during this fiscal and has plans to open another five branches, he added.

Source:thehindu.com

OBC cuts rates on NRI deposit schemes

City-based Oriental Bank of Commerce (OBC) on Wednesday said it lowered the interest rates on deposit schemes for non-residents up to 81 basis points.

Announcing the changes in its offered interest rates for FCNR (B) term deposits, the lender, in a statement, said the revised Fixed Deposit interest rates are effective from Feb 1.

"FCNR (B) deposit rates have been revised on all maturities from one to five years for US dollars, British pound, euro, Australian dollar and Canadian dollar," it said.

USD FCNR (B) deposit rate for one to two years has decreased to 2.98 from 3 per cent earlier, GBP deposit to 3.48 from 4.07 per cent, EUR deposit to 3.28 from 4.06 per cent, AUD deposit to 4.84 from 5.65 per cent and CAD deposit to 3.30 from 3.47 per cent

Source: financialexpress

NHB launches three fixed deposit schemes

Apex housing financial institution National Housing Bank (NHB) on Thursday launched three fixed-deposit schemes, including a

tax-saving scheme, which carries interest rate up to 9.25 per cent.

"The funds mobilised would be used by the NHB for its business activities," the NHB said in a release.

Under the NHB Sunidhi term-deposit scheme, the investors will get 9.25 per cent interest for 12 months and 9 per cent interest for up to five years.

NHB tax saving Suvrigdhi will pay an interest rate of 8.75 per cent. The deposit will have a lock-in period of five years.

In addition, NHB has launched Sumeru zero-coupon bonds which will be sold at a discount at Rs 4,360 with a face value of Rs 10,000 that the holder will get after a maturity period of 10 years.

For information visit to: http://www.fixeddepositindia.blogspot.com

Source: Economictimes

New fixed deposit scheme

To mark its 80th anniversary, the South Indian Bank has introduced a new fixed deposit scheme – 80 Plus - offering 11 per cent interest (11.25 per cent for senior citizens) on deposits for 39 months with a minimum investment of Rs.50,000.

Each depositor will also get a free personal accident insurance cover of Rs.1 lakh. The scheme would be launched on January 20 in Delhi, said the bank.


For more information visit to: http://www.fixeddepositindia.blogspot.com


Source:hindu.com