NEWS & ADVICE : FIXED DEPOSITS
The recent interest rate hike
By Neelima Shankar
Print    Email    RSS   

The current hike in deposit and lending rates can be related to the above phenomenon. Another reason which might have triggered banks towards the move is RBI's advice to raise deposit rates and reduce lending rates in order to bring down their net interest margins (NIM).

RBI has advised that if credit flow is not a matter of concern for banks then they should move their real rates in a way that deposit growth is achieved. So far banks seem to be going the RBI way. Many banks have raised their fixed deposit rates. To know more on the new rates, visit rupeetimes.com

They have however said that reducing lending rates will not be a viable option for bringing down NIM as a dip in lending rates will increase their cost of funds. Major lenders like ICICI Bank, HDFC Bank and PNB have already raised their prime lending rates. The largest lender of the country, State Bank of India has recently raised its deposit rates by as much as 150 basis points. If SBI decides to raise its lending rates too, then it can be considered that loan rate hike is on board.


 


Page    | 12 |
(Comments Posted : 2) Post Your Comments
1. The same thing - Date - I too searched for before I started to read because many articles become obsolete due to further developments.
rightinformer (Posted: Nov 9, 2011)
2. Hi,

Nice article. However, can you also put date on the articles? In this fast changing world, it is quite imp to know if the information present in the article is based on latest facts.
Sammy (Posted: Dec 21, 2010)
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
FMPs or FDs: Make an informed choice
How to Invest to Save?
Things to know before retirement
Manage your FD in a better way
FDs or Equity? Which suits you best?


[**WhatsApp:+2'7'7'8'3'1'7'6'0'5'7'*][Mifepristone...
MEXING: CaℒL Giℛℒ In Hoshiarpur 09855660911...
Sakeela.CaℒL Giℛℒs In Kharar 0985566O911...
NANGAL: CaℒL Giℛℒ In Una 09855660911 Escoℛt...

NEWS THIS WEEK
Federal Bank launched V connect for its customers Feb 12, 2015
Andhra Bank on expansion mode Feb 11, 2015
Dena Bank earned a profit of 13%. Feb 9, 2015
Banks expected to cut down the rates Feb 5, 2015
RBI kept the rates unchanged Feb 4, 2015
News Archive