Private sector lender, HDFC Bank is going to increase interest rates of both fixed deposits as well as loans by 100 basis points and 50 basis points respectively.
According to sources, the deposit rates would see a rise in the range of 25-100 bps from today, March 14, 2011. Also the base rate would be raised by another 50 bps taking to 8.7%.
The last time the bank had raised its base rate was on February 24, 2011 when it was taken to 8.2%.
Following this rise, all loans including auto and home loans would get dearer by atleast 50 bps.
For amount less than Rs 15 lakh, deposits having tenor of 46-90 days would now fetch the depositor and interest of 5%, which is a 100 bps rise from the previous figure.
The 61-90 days deposit will have interest of 5.5% associated with it while those in the range of 6 months 1 day to 6 months 15 days will bear interest of 6.75%.
Interest of deposits having tenor of 366-388 days will be 8.25% while that for 2 years 17 days to 3 years deposit will be 8.5%.
The interest rate hike follows the policy rate hike by regulator, Reserve Bank of India in the last review of monetary policy.