Indian Bank raised annual rates on two special retail term deposits by 15 basis points each from Oct. 23, offering higher returns for customers who lock up funds for 555 or 777 days.
The 555-day Ind Grow deposit now pays 6.80%, up from 6.65%, and the 777-day Ind Prosper deposit pays 6.75%, up from 6.60%, the bank said. Its Asset Liability Management Committee approved the changes Oct. 22.
For deposits below ₹3 crore, the bank lists rates of 7.30% for senior citizens and 7.55% for super senior citizens on Ind Grow. The corresponding rates for Ind Prosper are 7.25% and 7.50%. The revised domestic rates apply to new deposits and renewed maturing deposits.
The Oct. 22 filing records the committee’s approval but does not give a reason for the increases. In a separate Oct. 7 filing, Indian Bank said the Reserve Bank of India’s Monetary Policy Committee had raised the policy repo rate by 25 basis points. The bank raised its repo-linked benchmark lending rate from 7.95% to 8.20%, effective Oct. 8; its deposit-rate filing does not say whether the policy move factored into the decision.
On an Oct. 15 earnings call, Indian Bank Managing Director and CEO Binod Kumar said bulk deposits fell to ₹1.52 trillion from ₹1.62 trillion in the prior quarter. For the quarter ended Sept. 30, the bank set a retail term-deposit growth target of ₹50 billion to ₹60 billion, below its usual quarterly target of ₹100 billion to ₹110 billion.
Kumar said the bank raised $2.3 billion, or about ₹210 billion, through foreign currency non-resident bank (FCNR(B)) deposits. He said Indian Bank remained on the borrowing side and had no surplus liquidity on account of those deposits.
