By CNBC-TV18 May 5, 2022 8:06:53 PM IST (Updated)
The increase in FD rates comes after the Reserve Bank of India (RBI) announced a 40 basis points increase in the repo rate. The increase is effective from May 6 on all deposits below Rs 2 crore.
Private sector lender Kotak Mahindra Bank Ltd on Thursday announced a rate increase in fixed deposit (FD) interest rates across multiple tenor baskets for retail customers.
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The increase in FD rates comes after the Reserve Bank of India (RBI) announced a 40 basis points increase in the repo rate. The increase is effective from May 6 on all deposits below Rs 2 crore.
KMBL’s Retail Fixed Deposit rates effective 6th May, 2022
| Tenure / Rates | Less than 2 Cr. for Regularcustomers | Less than 2Cr. for Senior citizens |
| 7 - 14 Days | 2.50% | 3.00% |
| 15 - 30 Days | 2.50% | 3.00% |
| 31 - 45 Days | 3.00% | 3.50% |
| 46 - 90 Days | 3.00% | 3.50% |
| 91 - 120 Days | 3.50% | 4.00% |
| 121 - 179 Days | 3.50% | 4.00% |
| 180 Days | 4.75% | 5.25% |
| 181 Days to 269 Days | 4.75% | 5.25% |
| 270 Days | 4.75% | 5.25% |
| 271 Days - 363 Days | 4.75% | 5.25% |
| 364 Days | 5.25% | 5.75% |
| 365 Days - 389 Days | 5.40% | 5.90% |
| 390 Days (12 months 25 days) | 5.50% | 6.00% |
| 391Days- Less than 23 Months | 5.50% | 6.00% |
| 23 Months | 5.60% | 6.10% |
| 23 Months 1 Day < 2 year | 5.60% | 6.10% |
| 2 Year- Less than 3 Year | 5.60% | 6.10% |
| 3 years and < 4 years | 5.75% | 6.25% |
| 4 years and < 5 years | 5.75% | 6.25% |
| 5 years and <= 10 years | 5.75% | 6.25% |
Virat Diwanji, Group President, Retail Liabilities & Branch Banking, Kotak Mahindra Bank said, "This fixed deposit rate increase is a golden opportunity being unleashed after nearly two years of low-interest rate scenario in the economy. We are among the first banks to announce this hike. This is the apt time for consumers to save for their cherished goals and enjoy increased returns on their savings."
| Maturity Period | Rs. 2 Crore & above But below 5 Crores | Rs. 5 Crore & aboveBut below 10 Crores | Rs. 10 Crores &above But below 25 Cr | Rs. 25 Cr & above |
| 7Days - 14Days | 3.00% | 3.00% | 3.00% | 3.00% |
| 15Days - 30Days | 3.00% | 3.25% | 3.25% | 3.25% |
| 31Days - 45Days | 3.25% | 3.50% | 3.50% | 3.50% |
| 46Days - 60Days | 3.25% | 3.75% | 3.75% | 3.75% |
| 61Days - 90Days | 3.25% | 3.75% | 3.75% | 3.75% |
| 91Days - 120Days | 4.00% | 4.25% | 4.25% | 4.25% |
| 121Days - 179Days | 4.00% | 4.50% | 4.50% | 4.50% |
| 180Days | 4.75% | 4.75% | 4.75% | 4.75% |
| 181Days - 270Days | 4.75% | 4.75% | 4.75% | 4.75% |
| 271Days ‐ 279Days | 3.00% | 3.00% | 3.00% | 3.00% |
| 280Days ‐ Less Than 12Months | 4.75% | 4.75% | 4.75% | 4.75% |
| 12Months - Less than 15Months | 5.25% | 5.15% | 5.15% | 5.15% |
| 15Months - Less than 18Months | 5.25% | 5.25% | 5.25% | 5.25% |
| 18Months - Less than 2Year | 5.50% | 5.25% | 5.25% | 5.25% |
| 2Year - Less than 3Year | 5.50% | 5.25% | 5.25% | 5.25% |
| 3Year - Less than 4Year | 5.75% | 5.25% | 5.25% | 5.25% |
| 4Year - Less than 5Year | 5.75% | 5.25% | 5.25% | 5.25% |
| 5Year - Up to & inclusive of 7Year | 5.75% | 5.25% | 5.25% | 5.25% |
Earlier today, ICICI Bank revised the external benchmark lending rate (EBLR) to 8.10 percent, and the Bank of Baroda raised the rate to 6.90 percent.
RBI policy repo rate effective May 4, 2022, is 4.40 percent, ICICI Bank said. "ICICI Bank External Benchmark Lending Rate (I-EBLR) is referenced to RBI policy repo rate with a mark-up over repo rate. I-EBLR is 8.10 percent p.a.p.m. effective May 4, 2022," the bank said.
The EBLR moves up or down in accordance with the movement in the repo rate. State-owned Bank of Baroda also revised the external benchmark linked lending rate, with effect from May 5, 2022.
"For retail loans applicable BRLLR is 6.90 percent with effect from May 5, 2022 (current RBI repo rate:4.40 percent plus mark up of 2.50 percent)," Bank of Baroda said. BoB had introduced Baroda Repo Linked Lending Rate (BRLLR) in respect of all retail lending products from October 2019.
The country's largest lender State Bank of India (SBI) charges the EBLR at 6.65 percent plus the credit risk premium, with effect from April 1, 2022. EBLR is a sum of external benchmark rate (EBR) and credit risk premium (CRP). Last month, SBI hiked the marginal cost-based lending rate (MCLR) by 10 basis points across all tenures.
With the revision, the benchmark one-year MCLR -- against which most of the consumer loans are priced -- increased to 7.10 percent per annum. In September 2019, the Reserve Bank had advised all banks to mandatorily link the interest rate to an external benchmark (which is the repo rate) for all new floating rate personal or retail loans as well as for floating-rate loans to MSMEs, with effect from October 1, 2019.
(Edited by : Jomy Jos Pullokaran)
First Published: May 5, 2022 8:01 PM IST
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