HDFC Bank too hikes lending, deposit rates

HDFC Bank on Friday joined the ranks of others like fellow-private sector ICICI Bank and state-owned Punjab National Bank by hiking deposit and lending rates by up to 75 basis points.

The move by the second-largest private sector lender will give better returns on fixed deposits, but will also make loans more expensive for existing customers.

The bank revised the rate of interest on domestic term deposits of various tenures upward by 25-75 basis points to tide over the tight liquidity situation in the market. In addition, it hiked its benchmark prime lending rate (BPLR) by 25 basis points to 16.5 per cent per annum from 16.25 per cent with effect from Friday.

Interest on term deposits with a tenure of three years and a day to five years will now earn 8.25 per cent interest per annum compared to 7.5 per cent earlier, following the 75 basis points hike, according to HDFC Bank's website.

The interest rate on term deposits with a maturity period of five years and a day to 10 years will go up by 75 basis points each to 8.25 per cent. Furthermore, the peak interest rate on retail fixed deposits with the bank has now been increased to 8.25 per cent.

For fixed deposits with a tenure of one year and a day to a year and 15 days, the interest rate has been hiked to 7.5 per cent from 7 per cent, while deposits with a year and 16 day maturity period will attract 7.75 per cent interest, following a 50 basis points increase.