Ujjivan Small Finance Bank Deposit rates on some buckets have also been increased in line with the emerging macro-economic trend.
With liquidity crunching and credit demand rising, the competition for deposits could get more intense.
The CEO of a private sector bank recently said, “This is a deposit war.” multiple lenders from state Bank of India To HDFC Deposit rates have been increased several times since April reserve Bank of India Started tightening interest rates to curb inflation.
Lending Branch of Bajaj Finance Bajaj FinservHas increased fixed deposit rates by up to 25 basis points from November 22 for tenors between 12 months to 23 months. It has even introduced a tenure of 39 months to attract savers.
For a tenure of 44 months, depositors can get up to 7.7% per annum, while senior citizens above 60 years can avail an interest rate of 7.95% per annum.
Ujjivan said its highest interest rate for regular depositors would be 8% for 80 weeks (560 days) while senior citizens would get 8.75% for the same maturity.
Despite intense competition for deposit accumulation, deposit growth remained in the single digits, while bank loan offtake is in the high teens. reserve Bank of India Data as of November 4 showed deposits grew by 8.2% year-on-year, while bank credit grew by 17%, driven by higher demand from retail as well. working capital In a high inflation market.
For short-term rates, the weighted average call rate also rose from 3.34% a year ago to 5.98% as on November 4, reflecting tight inter-bank liquidity as the central bank withdraws excess funds, which are needed for longer periods. was inserted during Pandemic to boost the economy.
“Deposit rates are expected to increase further owing to credit offtake, widening credit deposit gap, festive season, low liquidity in the market and inflation.” care rating Said in the first month.