New Delhi, Nov 4 (IANS): The government-run lender Allahabad Bank said it has hiked interest rates on domestic term deposits by up to 1.2 percent per annum effective from Monday.
“Bank has decided to revise the interest rate upward up to 1.20 percent on different maturity on domestic retail term deposits schemes less than Rs.1 crore, with effect from Nov 4, 2013,” Allahabad Bank said in a statement.
The bank, however, did not announce any change in lending rates.
The public sector bank's decision to hike term deposit rates came days after the Reserve Bank of India hiked its key policy rate.
In its second quarter review of the monetary policy for 2013-14, announced Oct 29, the RBI hiked repo rate by 25 basis points or 0.25 percent to 7.75 percent. Repurchase or repo rate is the rate of interest that banks pay when they borrow money from the central bank to meet their short-term funds requirement.