Even as liquidity has eased, the underlying fear of continuing tightness still remains. With call rates ruling in the range of 1-2%, some new generation private sector banks have increased interest rates on various deposits to raise resources.Industrial Development Bank of India (IDBI) has raised rate on its 360-day fixed scheme by 50 basis points to 9.5% while Yes Bank has raised the rate for deposits of 1 year-1 day to two-year category by 125 basis points to 10.25%. IDBI's chief financial officer L P Agarwal said: "We raised rate after a review of market conditions. The bank has to revise (read raise) rates to remain in competition. Though liquidity is comfortable in the market now, it is difficult to say how long liquidity will remain easy. The bank is able to get durable resources by giving attractive rates to retail depositors."
