State Bank of India has increased retail fixed deposit rates by up to 80 basis points (bps) on select maturities, with effect from October 22.
Banks are getting aggressive in increasing deposit rates on the back of a healthy pick-up in loan growth and lagging deposit growth.
The peak deposit rate of SBI now stands at 6.25 per cent for two years to less than three years maturity, as compared to 5.65 per cent earlier. Senior citizens will get 6.75 per cent for the same maturity. For one year to less than two years, SBI is offering 6.10 per cent as compared to 5.60 per cent earlier.
Another lender, IDBI Bank, has come out with a special fixed deposit scheme offering 6.4 per cent for 555 days. The special rate is available till December 31.
Senior citizens will get 6.90 per cent. IDBI Bank has also hiked the deposit rates in some other buckets by up to 40 bps.
According to the latest RBI data, bank credit is growing at 17.9 per cent year-on-year till October 7, as compared to 6.5 per cent a year ago. Deposit is growing at 9.6 per cent as against 10.2 per cent a year ago.