New Delhi: Private sector lender HDFC Bank has hiked fixed deposit rates on retail deposits by 20 basis points with effect from June 10. The rates are applicable on various tenors.
HDFC Bank is offering FD rates at 7.10 percent for 15 to 18 months, FD rates at 6.60 percent for a one year to 15 months and FD rates at 7.25% for 18 months to less than 21 months.
Senior citizens will get 50 bps higher FD rates as compared to general public.
The move comes a week after the Reserve Bank of India (RBI) announced pause in its key lending rates in its monetary policy for the 8th consecutive time.
On June 7, the RBI’s Monetary Policy Committee (MPC) meeting decided to stick to the current 6.5 per cent repo rate with a 4:2 majority vote. The RBI had last changed rates in February 2023, when the repo rate was hiked to 6.5 per cent. The RBI raised rates by 2.5 per cent between May 2022 and February 2023 after which they have been kept on hold to support economic growth despite inflationary pressures in the past.
The repo rate is the interest rate at which the RBI gives short term loans to banks to enable them to meet their liquidity requirements. This in turn has an impact on the cost of loans that the banks extend to the corporate entities and consumers.