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List of Banks That Revised FD Rates In The 1st Week of April Ahead of RBI MPC Meet
The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) will make its policy stance tomorrow, Friday, April 8, 2022, amid experts predicting that the RBI would maintain its policy stance and key rates unchanged during the bi-monthly monetary review. Three banks, HDFC, Indian Bank, and Karnataka Bank, have already announced interest rate hikes in the first week of April, ahead of the MPC meeting. So let's have a look at them.
HDFC Bank
On Wednesday, HDFC Bank increased the interest rate on term deposits of less than Rs 2 crore maturing in one to two years by ten basis points to 5.10 percent from 5%. The bank will provide the following interest rates on FDs beginning April 6, 2022.
| Tenors | Interest Rate (per annum) | Senior Citizen Rates (per annum) |
|---|---|---|
| 7 - 14 days | 2.50% | 3.00% |
| 15 - 29 days | 2.50% | 3.00% |
| 30 - 45 days | 3.00% | 3.50% |
| 46 - 60 days | 3.00% | 3.50% |
| 61 - 90 days | 3.00% | 3.50% |
| 91 days - 6 months | 3.50% | 4.00% |
| 6 mnths 1 days - 9 mnths | 4.40% | 4.90% |
| 9 mnths 1 day less than 1 Year | 4.40% | 4.90% |
| 1 Year | 5.10% | 5.60% |
| 1 year 1 day - 2 years | 5.10% | 5.60% |
| 2 years 1 day - 3 years | 5.20% | 5.70% |
| 3 year 1 day- 5 years | 5.45% | 5.95% |
| 5 years 1 day - 10 years | 5.60% | 6.35% |
| Source: Bank Website |
Indian Bank
Indian Bank, a public sector lender, raised the interest rate on one-year and less-than-two-year deposits from 4.95 percent to 5.00 percent and 5.00 percent to 5.05 percent, respectively, on Tuesday. The bank will begin offering the following rates to the general public on April 5, 2022, and elderly people will be eligible for an additional 0.50 percent interest on deposits maturing in 7 days to less than 5 years. In addition to the additional rate of 0.50 percent offered to elderly citizens through the "IB - Golden Ager" plan, the bank gives an additional 0.25 percent higher rate of interest on deposits maturing in 5 to 10 years.
| Period | Existing | Revised |
|---|---|---|
| 7 days to 14 days | 2.8 | 2.8 |
| 15 days to 29 days | 2.8 | 2.8 |
| 30 days to 45 days | 2.8 | 2.8 |
| 46 days to 90 days | 3.25 | 3.25 |
| 91 days to 120 days | 3.35 | 3.35 |
| 121 days to 180 days | 3.5 | 3.5 |
| 181 days to less than 9 months | 4 | 4 |
| 9 months to less than 1 year | 4.4 | 4.4 |
| 1 year | 4.95 | 5 |
| Above 1 year to less than 2 years | 5 | 5.05 |
| 2 years to less than 3 years | 5.1 | 5.1 |
| 3 years to less than 5 years | 5.2 | 5.2 |
| 5 year | 5.25 | 5.25 |
| Above 5 years | 5.15 | 5.15 |
| Source: Bank Website. With effect from 05.04.2022. |
Karnataka Bank
Karnataka Bank, a private sector lender, announced an interest rate adjustment on fixed deposits of less than Rs 2 crore on April 1, 2022. The prices shown below are for regular customers only, and elderly citizens are entitled to a 0.40 percent additional above the general rate for tenures of 1 to 5 years, and a 0.50 percent additional for tenures of 5 to 10 years.
| Tenors | Interest Rate (per annum) |
|---|---|
| 7 days to 45 days | 3.4 |
| 46 days to 90 days | 4.9 |
| 91 days to 364 days | 5 |
| 1 year to 2 Years | 5.1 |
| Above 2 Years to 5 years | 5.4 |
| Above 5 years to 10 years | 5.5 |
| Source: Bank Website |
Note
Economists have begun speculating on what the RBI MPC would declare on Friday ahead of the meeting. Mr.Rajiv Shastri, Director and CEO of NJ Mutual Fund, said as a result of this that "We don't expect any change in policy rates. Liquidity conditions may change as a result of subsequent actions which may change the operative rate. Higher inflation is largely because of supply-side issues which cannot be addressed through higher rates. While persistent inflation can become systemic, I think we still have some time before we get there."
On the other side, Mr. Anand Nevatia, Fund Manager, TRUST Mutual Fund has said "Since the last policy, a hawkish Fed and the war in Europe have significantly increased the upside risk to inflation. Crude at the north of $100, will not only disturb the inflation expectations but also impact the deficit estimations. However, the commentary from both the GOI and MPC members in the interim has been more towards assuaging the fears due to the spike in crude and maintaining the focus on supporting growth. Expect the MPC to maintain status quo while revising upwards the inflation expectations, arising from a volatile global environment, rising commodity prices, and supply chain disruptions due to the war."
