HDFC bank has increased its fixed deposit interest rates on two tenures starting today. Deposits for 35 months will attract a 7.35% interest rate, and 55 months will attract 7.4% rate. For senior citizens, a 35 month FD will have an interest rate of 7.85%, and 55 month FD will get a rate of 7.9%.
This comes after the CEO of the country’s largest private bank, HDFC Bank said that he is ‘not happy’ with the bank’s numbers on deposits for the first quarter of this fiscal. The bank reported total deposits of Rs 23.8 lakh crore as on June 30, up 24.4% year-on-year. Gross advances grew much faster, accelerating 52.6% to Rs 24.9 lakh crore during this period.
HDFC Bank MD Sashidhar Jagdishan stated advances will grow slower post-HDFC merger to lower the 110% credit-deposit ratio. The bank plans 900 new semi-urban branches and saw a drop in attrition despite a social media controversy. RBI’s Das cautioned against aggressive lending. Liquidity buffers and prepaying borrowings are vital steps.
Although the bank has not received any directive from the regulator on this, the focus this year will be on deposit growth, said Sashidhar Jagdishan, CEO of HDFC Bank at the earnings call of Q1FY25.The wide gap between credit and deposit growth, which exerts pressure to mobilise funds, has been flagged as a regulatory concern by the RBI for the banking sector as a whole.
