IDBI reduces fixed housing loan rates, increases deposit rates

IDBI Bank has raised the deposit rates by 50 basis points on deposits above nine months and reduced ‘fixed’ interest rates on housing loans by 100 to 150 basis points.

Accordingly, the rate on a nine month deposit is 7.75 per cent while ten year deposits are now 8.75 per cent. For fixed loans the revised rate for loans up to three years is 12.5 per cent (13.5-14 per cent) and for loans up to five years it is 12.75 per cent (13.75-14.25 per cent). The floating rate remains unchanged at 11.25 per cent.

A bank official was quoted in Financial Express saying that the bank’s deposits rates were hiked because the card rates, i.e. the usual buckets of three months, six months, nine months, 12 months, 18 months etc were getting overshadowed by special term deposit schemes of 390 days or 500 days tailor made by competing banks.

The bank has reduced the fixed home loan rate in line with the current market rates. IDBI Bank too kept fixed housing loan rates at 13.5 per cent-14.75 per cent for three and five year loans.