Home / Business and Economy / Bandhan Bank Hikes FD Rates Amid RBI Repo Rate Pause
Bandhan Bank Hikes FD Rates Amid RBI Repo Rate Pause
24 Jun
Summary
- Bandhan Bank increased FD rates by 20 basis points for specific tenors.
- Senior citizens can now earn up to 7.95% on certain Bandhan Bank FDs.
- This move occurs while the RBI maintains its repo rate unchanged.
Bandhan Bank recently announced an increase in its fixed deposit (FD) interest rates. For deposits with a tenor of two to three years, the bank is now offering 7.95% to senior citizens and 7.45% to others. In the three- to five-year bucket, rates stand at 7.75% for senior citizens and 7.25% for others.
This adjustment in FD rates by Bandhan Bank occurs while the Reserve Bank of India's Monetary Policy Committee has maintained a status quo on the repo rate, keeping it at 5.25% for the third consecutive time. The banking sector is experiencing pressure on deposit mobilization, evidenced by a credit-deposit growth gap exceeding 500 basis points.
Earlier, Bank of Baroda had introduced a new retail term deposit scheme, 'bob Golden Goal Deposit Scheme', offering rates up to 7.40% per annum for deposits with a 555-day tenure. These increased deposit rates signify a broader trend among banks to attract customer funds in a competitive financial landscape.
