HDFC and Bajaj Finance increase interest rates on longer-term deposits
New Delhi: In an effort to mop up funds before Reserve Bank of India (RBI) policy normalizes, major non-bank lenders are raising interest rates on longer-term deposits. Mortgage lender HDFC and Bajaj Finance, two triple-A rate companies, have raised interest rates on their longer-term deposits.
Previously, HDFC offered an interest rate of 6.2% on 33-month deposits, 6.6% on 66-month deposits, and 6.65% on 99-month deposits. These are applicable to fixed rate deposits for a minimum amount of Rs 20,000 and a maximum of Rs 2 crore. Seniors receive an additional 0.25% per year and online deposits an additional 0.1%. Following the review, HDFC now offers 6.25% on 33-month deposits, 6.7% on 66-month deposits and 6.8% on 99-month deposits. It will continue to offer an additional 0.25% for seniors and an additional 0.1% for online deposits.
Bajaj Finance has raised interest rates by 30 basis points or 0.30% for deposits with terms of between two and five years, for both regular income and cumulative options. For deposits of up to Rs 5 crore with an occupancy period of between 24 and 35 months, he will now pay 6.4% per annum under the cumulative option. It will pay 6.8% per year for deposits between 36 and 60 months.
According to a India time report, Edelweiss Financial Services said on Tuesday that it plans to raise Rs 500 crore through a public issue of non-convertible debentures (NCDs) in which investors could get between 8.75% and 9.7% per year. The NCDs are rated AA- by Crisil and AA by Acuite. The offer will start on December 6 and close on December 27.