Lately after Reserve Bank of India hiked the repo rates by 0.25%, Kotak Mahindra Bank declared to raise its rates by 25 bps. RBI has raised the repo rate up to 8%. The rise in rates will increase the cost of borrowing for the banks. The hike in the rate will attract more number of depositors.
Kotak Mahindra is the first one to raise the rates. According to the bank statement the bank has increased the rates by 25 bps on term deposits up to Rs 1 crore. The revised rates will be applicable from 6th February. After the revision in rates the bank will be providing 9.25% interest rates for a deposit of 390 days and 9% for the deposit of 181 to 269 days.