LAKSHMI VILAS BANK HIKES RATES BY 0.50%

New Delhi: Lakshmi Vilas Bank has announced a 0.50 percentage point increase in deposit rates in a single maturity.

Depositors parking money in the 271-364 days maturity will be paid an interest of 8.75 per cent a year as against the earlier 8.25 per cent, the bank said.

The hike was effective from Tuesday. The move is contrary to the growing feeling among bankers to reduce the deposit rates in order to keep the cost of funds under check, which can be further passed on to the borrowers by lowering the rates.

The country’s largest lender SBI had taken the lead a fortnight back and cut its deposit rates by 0.25 per cent, a move which was appreciated by a majority of top-level bankers. — PTI