Lakshmi Vilas raises deposit rates by 0.50 percentage points

Lakshmi Vilas Bank today announced a 0.50 percentage point increase in deposit rates in a single maturity.

Depositors parking money in the 271-364 days maturity will be paid an interest of 8.75 per cent per annum as against the earlier 8.25 per cent,the private-sector bank said in a statement. The hike is applicable from tomorrow,it said.

The move is contrary to the growing feeling within bankers to somehow reduce the deposit rates in order to keep the cost of funds under check,which can be further passed on to the borrowers by lowering the rates.