Bandhan Bank raises FD rates up to 20 bps as deposit competition intensifies

Bandhan Bank has raised its Fixed Deposit rates by up to 20 basis points, taking senior citizen yields to nearly 8%. The move comes without any change from the RBI, which has kept the national repo rate unchanged.

The rate hike reflects a deposit mismatch building inside the banking sector. Credit growth is running fast as consumers and corporations borrow at record pace, forcing banks to source more cash to fund new loans.