To attract more deposits to meet the growing credit needs, Canara Bank will raise fixed deposit rates by 0.50 to 1% from tomorrow.
Deposits of less than Rs 15 lakh with a maturity of 180 days and more would fetch higher interest rates. Bulk domestic deposits of more than Rs 15 lakh to Rs 2 crore with a maturity of 91 days and above, would also draw higher interest rates, a statement by the bank said today.
The bank said deposits of less than Rs 15 lakh with the maturity of 180 days to less than one year would get 7% interest rate against the current 6%, while those with maturity of one year to less than two years would receive 1% more interest rate at 8%. Deposits of two years and above would fetch 8.50% interest rates. Banks are under pressure to meet liquidity requirement, particularly after the Reserve Bank raised CRR by 0.50 %, which sucked out Rs 13,500 crore from the system.