HDFC Bank today became the first lender to increase its fixed deposit rates by up to 75 basis points following RBI hiking its key short-term rates.
According to a bank official, with deposit rates going up, HDFC may also hike lending rates in the next few weeks.
The revised fixed deposit rates would come into effect starting 30 July.
PTI quoted Paresh Sukthankar, HDFC Bank executive director the bank, as saying that the bank had decided to raise deposit rates between 25-75 basis points across various tenors.
He further told PTI that the rate hike was logicl as the banking system is expected to remain in marginally deficit situation coupled with expected strong credit growth over the coming days.
He added that the economy was expected to grow at 8.5 per cent in 2010-11 as per RBI's projection and going forward loan growth would pick up.
Offering details of increase in deposit rates, Sukthankar said the term deposit rate with maturity ranging from 91 days to 6 months would be hiked by 75 basis points to 5.25 per cent from the existing 4.5 per cent.