Punjab National Bank and Karnataka Bank raised its deposit rates on select maturities by 0.25 per cent. Punjab National Bank raised deposit rates by 1.25 per cent to 8.75 per cent for term deposits of less than Rs 1 crore for maturities between six months and less than a year.
But, it has slashed the 0.25 per cent additional interest enjoyed by senior citizens.
Karnataka Bank also raised deposit rates by 0.25 per cent, from 9 per cent to 9.25 per cent, in the one and two-year deposit buckets.
Meanwhile, it is the liquidity crisis being faced by the banks is forcing the lenders to raise rates on deposits.