Private sector lender Kotak Mahindra Bank on Thursday announced a hike of up to 0.25% in the interest rate on fixed deposits with certain maturity period.
The move comes a day after the Reserve Bank of India delivered another interest rate hike of 0.25% on Wednesday. Deposit rates generally trail the lending rates, where the transmission happens first courtesy a bulk of new loans being made under external benchmarks like the RBI's repo rate.
Under the revised rates, which are effective from Friday, the 15 months to 2 years tenor bucket will fetch an interest of 7.25% for deposit amounts of Rs 2 crore to Rs 5 crore, and 7.10% for deposit amounts up to Rs 2 crore in the 12 months 25 days to 2 years tenor bucket.
"With the RBI increasing key interest rates, we have passed on the benefit to our valuable customers offering them a higher return on their savings," its head of the consumer bank Virat Diwanji said in the statement.
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