HDFC Bank hikes deposit rates

New Delhi: Signalling tightening of rates, HDFC Bank on Tuesday raised interest rates on deposits by up to 0.5 per cent for various tenors, while Bank of Baroda hiked lending rates by 0.1 per cent.

In a statement, HDFC Bank said the new rate interest rate on deposits below Rs 1 crore for various tenors will come into effect from Tuesday. The rate on deposits with tenor of 5-8 years and 8-10 years has been increased to 6.5 per cent from 6 per cent.

The rate has been hiked to 7.25 per cent for fixed deposits of 3-5 years from the earlier 7.1 per cent. The fixed deposit rate for one-year tenor has been fixed at 7.3 per cent, up from 7.25 per cent. State-owned Bank of Baroda announced a hike in MCLR effective Wednesday. The interest rate for different categories of borrowers are pegged at the marginal cost of funds-based lending rate (MCLR). "MCLR has been reviewed at 10 BPS above existing level w.e.f. November 7, 2018," the bank said in a statement.

The bank's one-year MCLR will be 8.65 per cent, which is competitive as per the current market scenario, it said. For all other tenors - overnight, one month, three months and six months - rates are 8.15 per cent, 8.20 per cent, 8.30 per cent and 8.50 per cent, respectively. The bank further said it does not add any mark-up on its MCLR for its best-rated home loan borrowers.

One-year MCLR, that is 8.65 per cent, is applicable irrespective of the total home loan amount and is available for a tenure of up to 30 years, it added. The Reserve Bank of India will be announcing its next bi-monthly monetary policy in the first week of December.