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Journalism of Courage
In wake of the recent hike in repo rate by the Reserve Bank of India (RBI), a few banks have revised their interest rates for housing loans and fixed deposits.
On Wednesday (February 8), the Monetary Policy Committee of the RBI hiked repo rate by 25 basis points to 6.5 per cent. The RBI has increased repo rate by a cumulative 250 basis points since May last year with an aim to tackle inflation.
The interest rate that the RBI charges when commercial banks borrow money from it is called the repo rate.
The Central Bank of India Friday hiked its interest rate, which will be effective from February 10. The interest rate for housing loan has been raised from 8.35-9.10 per cent to 8.60-9.35 per cent. The interest rate for deposits, however, remain unchanged, except a 0.25 per cent hike for deposits with 5-year tenure. While a one-year deposit will fetch 7.75 per cent interest rate, three-year and five-year deposits will earn 7.50 per cent and 7.25 per cent rates, respectively.
A day earlier, private lender Kotak Mahindra Bank revised its fixed deposit interest rate, increasing it by 25 basis points across select tenor buckets. Effective from Friday, the bank announced a hike of up to 0.25 per cent in the interest rate on fixed deposits with certain maturity period, news agency PTI reported.
Under the revised rates by Kotak Mahindra, the 15 months to 2 years tenor bucket will fetch an interest of 7.25 per cent for deposit amounts of Rs 2 crore to Rs 5 crore, and 7.10 per cent for deposit amounts up to Rs 2 crore in the 12 months 25 days to 2 years tenor bucket.
“With the RBI increasing key interest rates, we have passed on the benefit to our valuable customers offering them a higher return on their savings,” PTI quoted Kotak Mahindra head Virat Diwanji as saying.
