In the rising interest rate regime when most of the banks are raising rates, whether deposits or advances, private sector lender Laxmi Vilas Bank has retorted to the opposite trend by lowering interest rates of its fixed deposits.
The revised interest rates have come into effect from August 01, 2011.
Deposits of tenor between 91-180 days and 181-270 days will now attract interest of 8% and 8.25% respectively which is a 100 bps dip against previous rates.
The 271-364 days deposit has seen a 80 bps dip in interest rates taking it to 8.50% from 9.3% earlier.
"Now, our rates are on a par with the other banks. Anyway, the earlier revision (upward) was intended for a limited period only," said chief executive of the bank, Mr P R Somasundaram.