Bajaj Finance Hikes FD Rates by Up to 40 Bps, To Offer Up To 8.6%

Bajaj Finance, the lending arm of Bajaj Finserv, on Wednesday hiked its fixed deposit (FD) rates by up to 40 basis points. After the latest hike, its 44-month special tenure for senior citizens will invite an interest rate of 8.60 per cent per annum. The new rates are revised higher by 40 basis points on deposits with maturities ranging from 36 months to 60 months, it said.

Depositors below 60 years can earn up to 8.05 per cent per annum, while senior citizens can earn up to 8.30 per cent per annum, it said. The revised rates on Bajaj Finance FDs shall be applicable on fresh deposits and renewals of maturing deposits of up to Rs 5 crore, it said.

In the last monetary policy review in April 2023, in a surprising move, the RBI decided to keep the repo rate unchanged at 6.50 per cent after hiking by 250 basis points continuously since May 2022. It also revised downwards India’s FY24 inflation projection to 5.2 per cent from 5.3 per cent estimated earlier, and raised FY24 GDP growth forecast to 6.5 per cent from 6.4 per cent earlier.

The reverse repo rate and CRR also remained unchanged at 3.35 per cent and 4.5 per cent, respectively. The RBI also kept the SDF unchanged at 6.25 per cent, and MSF and Bank Rates maintained at 6.75 per cent.

On Monday (May 8, 2023), India’s largest private sector lender HDFC Bank has hiked its marginal cost of funds-based lending rates (MCLR) by 5-15 basis points (bps) across tenures, effective May 8, 2023. According to HDFC Bank’s website, its benchmark one-year MCLR, which is linked with key loans like home loan, auto loan and personal loan, has been hiked to 9.05 per cent.

The bank’s overnight MCLR now stands at 7.95 per cent. Its one-month MCLR has been hiked to 8.10 per cent, while its three-month MCLR now stands at 8.40 per cent. The lender’s six-month MCLR is now at 8.80 per cent, apart from two-year and three-year MCLRs at 9.10 per cent and 9.20 per cent, respectively.

(With PTI Inputs)