IDBI Bank yesterday became the first bank to increase interest rates after the Reserve Bank of India (RBI) raised key policy rates by 25 basis points. The bank raised the rates on term deposits by 10-50 basis points across maturities to attract fresh resources.
It also raised revised its benchmark prime lending rate by 25 basis points to 13.5 per cent. The new rates are effective from November 4.
IDBI Bank Chairman and Managing Director R M Malla said RBI had flagged the issue of negative returns on deposits. The bank wanted to give better returns to small depositors, he said.
State Bank of Mysore raises base rate
State Bank of Mysore would raise its base rate by 25 basis points to eight per cent with effect from November 1, it said in a statement.
On Tuesday, in its second monetary policy review, the central bank raised interest rates for the sixth time this year to tame inflation.