PNB hikes FD rates; Axis Bank raises lending rates: Check details

Leading private sector bank Punjab National Bank has hiked interest rates on Fixed Deposits (FDs). Axis Bank, on the other hand, raised the marginal cost of funds-based lending rates across tenures.

Punjab National Bank

PNB has hiked the interest rate on fixed deposits (FD) for amounts less than Rs 2 crore. According to the PNB website, the new interest rates will be effective from December 19, 2022.

PNB increased the interest rate on deposits maturing in 666 days by 95 basis points, from 6.3% to 7.25%. (bps). The bank will now offer an interest rate of 6.5% on deposits maturing over three and ten years, a 40 basis point increase from the prior rate of 6.1%.

According to the bank's website, senior citizens will receive an extra 50 basis points on top of the standard card rates for any domestic deposit maturity of under Rs 2 crore. The bank offers interest rates for senior citizens ranging from 4% to 7.75% for terms of seven days to ten years.

The bank offers super senior citizens interest rates ranging from 4.30% to 8.05% for terms of seven days to ten years. PNB increased the interest rate on deposits maturing in 666 days by 95 basis points, from 7.1% to 8.05%. (bps). The bank will now offer an interest rate of 7.30% on deposits maturing over three and ten years, a 40 basis point increase from the prior rate of 6.90%.

“The Senior citizens of age 60 years and up to 80 years shall get an additional rate of interest of 50 bps over applicable card rates for a period up to 5 years and 80bps for a period above 5 years on domestic deposits of less than Rs 2 crore. Further, Super Senior Citizens of age above 80 years shall get an additional rate of interest of 80 bps over the applicable card rate across all maturity buckets,” PNB website read.

Axis Bank

Axis Bank has increased its marginal cost of funds-based lending rates (MCLR) across tenures by 30 basis points. As a result, term loans linked to the MCLR are likely to see interest rates rise. As a result, EMIs may rise further. The new MCLR rates became effective on December 17, 2022.

According to the notice, the 1-year MCLR has increased from 8.45% to 8.75%, while the 2-year and 3-year MCLR have decreased from 8.55% and 8.6%, respectively, to 8.85% and 8.9%, respectively.

The three-month MCLR has also increased, moving from 8.35% to 8.65%, while the six-month MCLR has increased from 8.4% to 8.7%. In comparison to the previous 8.25% each, the one-month and overnight MCLR are now each at 8.5%.

According to the bank, "These rates will be valid until the next review."

The base rate, on the other hand, has remained at 9.15% since September 17, 2022.

Due to inflationary pressures, banks have been revising their benchmark lending rates, such as the MCLR, repo-linked lending rate, and external benchmark lending rate, more frequently in the current fiscal year. The central bank has increased the policy repo rate by 225 basis points so far in FY23, bringing the key rate to 6.25%, which is the highest level since August 2018.