Indian Interest Rates look north

MYSORE, India - Feb. 22, 2022 - PRLog -- During the first fortnight of this  month , Indian Monetary Authority the Reserve Bank of India  left    Repo Rate unchanged   , in spite   of rising retail inflation and wholesale price index in last few months . Repo Rate  is the rate at which the Reserve Bank of India lends money to commercial banks in the event of shortfall of funds . So it was expected  that   interest rates in India  would continue to steady   in the coming days .

But  now ,  some  leading  banks   have begin to alter the interest rates paid by them   to their customers for some selected maturities . The banks include  Public Sector lender State Bank of India  ( SBI ) , Private  sector   lenders HDFC Bank , Indusind Bank &  IDBI Bank  .   Some small Finance Banks ( SFB )  have also raised their interest rates .  Of course , the higher   rates are being paid for selected  maturities  and mostly  for their senior citizen customers . The altered rates  are little higher than the present rates by 0.10 % pa to 0.20 %   pa . But the trend    is visible .

Now as many as  six banks  are paying 7% pa or more  to their senior citizen customers  for the maturity of five years or more  . Two bank are paying such interest rates   even for  one year maturity .

We have to wait and see whether  the trend will develop  into a  interest rate  northward journey for the Indian Banking industry

PLAN N PROGRESS
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