Mumbai, June 30 -- Bandhan Bank said it has raised its fixed deposit (FD) rates by 20 basis points (bps) on select tenors, increasing rates for the two- to three-year tenor to seven point nine five per cent for senior citizens and seven point four five per cent for others. The move reflects the lender's assessment of funding needs and market conditions.
For the three- to five-year bucket the bank raised rates to seven point seven five per cent for senior citizens and seven point two five per cent for other depositors, representing a broad upward adjustment in medium-term yields. The revision aims to attract longer-tenor retail deposits and strengthen the bank's liability profile.
The change comes as the six-member Monetary Policy Committee of the Reserve Bank of India (RBI) has held the repo rate at five point two five per cent for a third consecutive meeting, and banks are reassessing pricing amid slower deposit mobilisation. The change reflects wider market moves as institutions balance lending growth with deposit mobilisation.
Deposits have become a sharper focus as the credit-deposit growth gap widened to over 500 basis points, prompting lenders to compete more aggressively for retail savings. The pressure to mobilise funds has led multiple banks to refresh product offerings and lift term deposit yields.
State-owned Bank of Baroda last week launched a retail term deposit called the bob Golden Goal Deposit Scheme offering rates up to seven point four per cent per annum on tenures of 555 days for retail deposits below Rs 30 million (mn). The scheme sets separate callable and non-callable rates for the general public, resident senior citizens and resident super senior citizens aged eighty years and above.
Published by HT Digital Content Services with permission from Construction World.