Country's third largest private lenders, Axis Bank and ICICI Bank have raised their deposit rates by 25 to 30 basis points (bps) on longer term maturities ahead of the central bank's monetary policy review.
The Reserve Bank of India is likely to reduce the repo rate for the first time in nine months on its monetary policy review.
While ICICI Bank has increased the deposit rate by 25 bps in the two to five years bracket, for Axis Bank, the deposit rate is revised up to 30 bps on selected categories. ICICI Bank's rate hike came into effect from 26 January, while for Axis Bank; the rate hike was effective January 24.
"We have increased the deposit rates in certain tenures and not across the board. The move is aimed to correct the mismatch in our asset-liability position. The rate hike was mostly on deposits with longer maturity," a senior official of Axis Bank said.