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HDFC raises fixed deposit rates by 50 bps

Since the announcement, as many as 25 banks, including State Bank of India, ICICI Bank, Punjab National Bank and Bank of Baroda, have already raised interest rates.

HDFC Bank has decided to increase its fixed deposit rates by up to 50 basis points across various maturities from Monday, a week after the bank raised its lending rate, sources said.

For fixed deposit of one year to one year and 15 days, the new rates would be higher by 50 basis points at 7 per cent. For 2-3 years it will be 7.25 per cent - 25 basis points more than the existing rate of 7 per cent, the source added.

The new rates would be effective Monday, sources added.

Term deposits for 30-45 days would fetch 4 per cent against existing 3.75 per cent. Interest rate on 91 days to less than 6 months will go up by 25 basis points at 5.5 per cent, they said.

This is the the third time in about 2 months that HDFC Bank has raised deposit rates.

Last week, the bank had raised base rate or the minimum lending rate by 0.25 per cent to 7.50 per cent.

The revision in interest rates follows the Reserve Bank of India's move to raise short-term lending (repo) and borrowing (reverse repo) rates in its September monetary review, in order to tame inflation by curbing consumer spending.

Since the announcement, as many as 25 banks, including State Bank of India, ICICI Bank, Punjab National Bank and Bank of Baroda, have already raised interest rates.