MUMBAI: Indian private sector lender Kotak Mahindra Bank said on Sunday it raised its saving bank interest rate and base rate, following a deregulation in savings deposit rates by India's central bank.
The bank revised the savings bank interest rate for deposits above 100,000 rupees to 6 percent per annum and that for up to 100,000 rupees to 5.50 percent per annum, it said in a statement.
The current savings bank interest rate was 4 percent per annum, it said.
Kotak Mahindra Bank also raised the base rate by 25 basis points to 10 percent per annum from Nov. 1 from the present 9.75 percent per annum and revised prime lending rates upwards by 25 basis points.
India's central bank on Tuesday deregulated savings deposit rates, its last administered bank rate, in a move that will expose such accounts to policy rates changes and push up the cost of funds for banks.
Earlier, private sector lender YES Bank also raised its savings deposit rate for all savings accounts by 200 basis points to 6 percent. It has also raised the base rate by 25 basis points to 10.5 percent.
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