State-owned lender Punjab & Sind Bank today announced an increase in interest rates on fixed deposits (FDs) of different maturities by up to 0.75 per cent per annum.
The new rates will be effective from August 4, the bank said in a release.
The new deposit rates range from 2.50 per cent to 7.50 per cent on FDs of 7 days to 10 years' tenor, said a bank official.
Punjab and Sind Bank's decision to hike deposit rates follows similar steps taken by leading banks like ICICI Bank, Punjab National Bank, Union Bank of India, Oriental Bank and HDFC Bank.
All these banks raised deposit rates after the Reserve Bank of India (RBI) increased its short-term lending (repo) and borrowing (reverse-repo) rates by up to 50 basis points on July 27. Some of the banks, including Punjab National Bank and Bank of Baroda, have raised lending rates also.
The RBI, however, kept the cash reserve ratio, the portion of deposits banks are required to keep with the central bank in cash, unchanged due to the difficult liquidity position in the markets.
More From This Section
While raising the rates, Punjab and Sind Bank said that it has decided to provide special rates of 7.25 per cent per annum and 7.50 per cent per annum for fixed maturities of 500 and 1,000 days' tenor.
"Senior citizens will continue getting additional benefit of 50 basis points, as hitherto," the bank added.