Kolkata-based private sector lender on Monday said it has launched a limited period scheme, offering one of the highest in the . The bank is offering an interest rate of 7.5 per cent on retail deposits of up to Rs 2 crore for a tenure of 600 days, effective from November 7.


Senior citizens will get 50 basis points more on FDs this scheme, taking their returns to 8 per cent for a 600-day tenure of up to Rs 2 crore.


This will be applicable to fresh deposits as well as renewals of maturing deposits.


With liquidity in the system tightening, and credit demand reaching multi-year highs, have now become aggressive in their deposit rate increase to garner durable liquidity to support the credit demand in the economy. Major and private sector revised their upwards last month and are currently engaged in a fierce competition to raise deposits.


Given that 45 per cent of are CASA, it is only the 55 per cent of term deposits that need adjustment and hence ideally, a 190-basis point increase in repo rate could result in 105 basis point increase in deposit rate.


On a system level, while is at a nine-year high of 17.9 per cent, deposit growth at 9.5 per cent is trailing by a substantial margin. With the high credit absorption and resources growing at a lower pace, are quoting higher rates for bulk deposits and also mobilizing through Certificates of Deposit (CD) market at a higher rate.



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