Earlier this month, the state-run lender raised deposit rates on smaller deposits of less than Rs. 1 crore by 25 basis points. 1 bps is 1/100th of a percentage point. This time around the bank has raised deposit rates for its bulk deposits over Rs. 1 crore by 1 percentage point. The rates shall be effective from November 30, 2017.
So, with the changed rates, 1 year deposit over Rs. 1 crore shall now earn a return of 5.25% per annum. Senior citizen shall be eligible for an additional 0.5% return across all maturities.
The rates have been revised to match up the return on such deposits from other banks. Of the total deposits or liabilities base of the bank, bulk deposits make up nearly 6% of the bank's deposit.
Though the rates have been revised to be in line with other bank's offering still it lags by some 100 bps.