Private sector lender, Kotak Mahindra Bank has raised interest rates of deposits by upto 25 bps across different maturities.
The bank had recently hiked its lending rates too.
Deposits having tenor of 2 years and above, 1000, 1002 days and till less than3 years, 3 years to less than 5 years, 5 years to 10 years will fetch the depositor an interest of 8%. This is a 20 bps rise over the previous rate of 7.80%.
Interest rates have been hiked by 25 bps for deposits having tenor of 271 days to less than a year taking it to 7.25% from 7% before.
Deposits maturing in 390 days and 700 days will now fetch 7.75% and 8% respectively, a rise by 25 bps.
"Interest rates have been moving upwards for the last one year. Our interest rates are in line with the market," Kotak Mahindra Bank Group Head (Consumer Banking) K V S Manian said.
"The Reserve Bank has hiked its policy rates and there was a tightening of liquidity in the system. We hiked our rates in response," Manian said.