Mangalore based Karnataka Bank Ltd has revised interest rates on three maturity slabs of term deposits, downwards by 50 basis points with effective from July 1.
The revised rates will be applicable on new deposits as well as on renewals.
The interest rates on term deposits up to and inclusive of Rs 5 crores, for a tenure of less than 1-yr will be at 7.5 percent p.a. On deposits with maturity between 1-yr to less than 3-yrs and 3-yrs to less than 5-yrs, the applicable rate of interest will be at 8 percent p.a.. Deposits with maturity period of 5-yrs or above will earn interest at rate of 8.5 percent p.a.
The bank has worked out a different structure for term deposits amounting above Rs 5 crore.
The applicable interest rate on deposits above Rs 5 crore, for 7 to 45 days is 3 percent, 4 percent for 46 to 90 days, 5 percent on deposits for 91 to 180 days, 6 percent on deposits for 181-364 days, 6.5 percent for deposits up to 1-yr and less than 3-yrs, 7 percent on deposits up to 3-yrs and less than 5-yrs and 7.5 percent for deposits above 5-yrs. For KBL tax planner the rate of interest is 8.5 percent.
The senior citizen deposits up to and inclusive of Rs 5 crore will attract an additional interest rate at 0.75 percent over the usual rates. In case of KBL tax planner for senior citizens deposits the applicable interest rate is 9.25 percent.
A penalty of 1 percent will be levied on any premature withdrawal.
The moves comes folowing the pre-budget meeting between the Union Finance Minister, Pranab Mukherjee and top officials of PSBs, where the minister urged the bankers to reduce the lending rates. Following this, SBI was the first bank to reduce its deposit rates by 0.25 percent on its term deposits to 11.75 percent p.a.