HDFC Bank may raise deposit rates by 1.25%

HDFC Bank is likely to raise its interest rates on retail term deposits by up to 1.25 per cent depending on the maturities.

The rate hike would be effective January 1 and applicable on deposits of less than Rs 15 lakh, a source from the bank told PTI.

Under the revised rates, a six months-16 days deposit would earn an interest of 7.75 per cent per annum, against 6.5 per cent earlier, the source said. Similarly, a 9 month-15 days deposit would get 7.75 per cent interest versus 6.75 earlier.

The move comes in three days of the bank raising its minimum rate of lending or the base rate to 7.75 per cent from 7.5 per cent. Kotak Mahindra Bank also raised its deposit rates on Sunday by up to 0.50 per cent.