Page 5 - Interest Rates

Bajaj Finance raises interest on FDs of up to Rs 5 crore by 25 bps

Revised rates applicable on fresh deposits and renewals

'Risk of recession' increased, expect to raise rates more: ECB's Lagarde

Lagarde said that the "risk of a recession" has increased, but that a downturn on its own won't be sufficient to tame soaring prices

Lagarde says removing stimulus 'not enough', ECB may raise rates further

European Central Bank President Christine Lagarde warned on Friday that the bank may have to raise interest rates beyond merely withdrawing stimulus and into territory that could restrain growth as the bank fights to control record inflation in the 19 countries that use the euro. We expect to raise rates further, and withdrawing accommodation may not be enough," Lagarde said in a speech at a banking forum in Frankfurt, Germany. She said the bank intended to bring inflation down in a timely manner and that how far we need to go, and how fast, will be determined by the inflation outlook. The ECB has raised rates at the fastest pace in its history to combat inflation that hit 10.7 per cent in the eurozone in October, the highest since statistics started being kept in 1997 and far above the bank's goal of 2 per cent. Inflation has been fed by high natural gas prices caused by Russia's cutbacks in gas supply during the war in Ukraine and by bottlenecks in supplies of parts and raw ...

Q2 earnings: Corporate profits decline, a first in nine quarters

The combined net profit of 2,725 listed companies across all sectors was down 6.3 per cent year-on-year (YoY) in Q2 -the first contraction after eight consecutive quarters of YoY growth

Share of low-cost deposits falls as FD rates rise, banks' NIM may take hit

With RBI on monetary tightening path, liquidity has shrunk and interest rates have hardened, forcing banks to hike rates on term deposits in order to get funds for credit growth

RBI governor Shaktikanta Das to meet bank chiefs ahead of monetary policy

Like to discuss issues related to growth, interest rates

Best of BS Opinion: Crypto meltdown, forced transmission, and more

Here are the best of Business Standard's opinion pieces for today

Bank of Baroda raises rates on retail term deposits by up to 100 bps

State-owned Bank of Baroda (BoB) on Monday increased its retail term deposit interest rates by up to 100 basis points or 1 percentage point in line with hardening rates. Interest rates have also been hiked on bulk saving deposits of Rs 50 crore and above to less than Rs 200 crore by up to 25 basis points, BoB said in a statement. The 10-year and above tenor domestic and NRO (Non-Resident Ordinary) term deposit will now offer an interest of 6.10 per cent, up from 5.10 per cent earlier. Deposits for above 1-2 years will earn an interest of 6.10 per cent, up from 5.50 per cent. For 2-3 years, the new rate is 6.25 per cent, up by 70 basis points. Interest rate for 3-10 years maturity have been increased by 45 basis points to 6.10 per cent, it said. At the short end, it said, 46-180 days term deposit will earn 50 basis points more at 4.50 per cent. Senior citizens will earn 50 basis points higher interest rate in each slab.

Rising interest rates to mute bond issuance this fiscal, says report

Corporate bond issuance is likely to remain muted witnessing 4-5 per cent growth this fiscal to touch Rs 41.42 lakh crore on rising coupon rates, despite the drawdown more than doubling in the second quarter, a report said. Bond sales more than doubled to Rs 2.1 lakh crore in the second quarter from the first quarter, when it was at a multi-year quarterly low of Rs 1 lakh crore, as banks issued bonds worth an all-time high of Rs 53,900 crore, and NBFCs, traditionally largest players in the market, issuing securities worth Rs 1.1 lakh crore in Q2, according to an analysis by Icra Ratings. Non-banking lenders have remained the largest issuers of bonds with a share of 47 per cent in the first half, followed by corporates and banks at 33 and 20 per cent, respectively, down from 50, 40 and 10 per cent, respectively from H1FY22, according to the report. Thanks to bumper sales in Q2, the overall bond issuances rose to Rs 3.3 lakh crore in the first half, and the agency expects Rs 3.7-4.2 .

Sundaram Finance to revise interest rates on deposits from November 16

Non-banking finance company Sundaram Finance on Saturday said the firm would revise interest rates on deposits for the general public and senior citizens with effect from November 16. For the public, the rate on one-year deposits would be 7.15 per cent against the existing 6.65 per cent; for 24 months it would be 7.15 per cent against 7 per cent; and for deposits of 36 months, it would remain unchanged at 7.30 per cent, a statement from the company said here. For senior citizens, the rate on deposits of one year would be 7.50 per cent as against 7 per cent; and for deposits up to 24 months, the rate would be 7.50 per cent against 7.35 per cent. For deposits of 36 months, the interest rates would be 7.80 per cent against 7.65 per cent, the company said. The current deposit balance as of October 31, 2022 stood at Rs 4,273 crore, the company said.

Banks go slow on bond sales as rising interest rates push up costs

The decision to go slow on these fund-raising plans - despite the booming credit growth - came at a time when bond market conditions turned turbulent

Dollar suffers biggest plunge since 2009 as CPI smacks Fed bets

A slower pace of rate hikes could curb the dollar's rally this year which has weakened its Group-of-10 currency peers

Global banking is a bright spot

The world's financial system faces an intimidating set of challenges, but the lessons of the global financial crisis are holding banks in good stead

Pakistan govt to implement 'interest-free' banking system by 2027

In a significant move, Pakistan's Finance Minister Ishaq Dhar on Wednesday announced that the country would move towards an 'interest-free' banking system under the Islamic law by 2027. The announcement came with Finance Minister Dhar conveying the government's intention of withdrawing its appeals against the Federal Shariat Court's April decision of eliminating interest from the country in five years, the Dawn newspaper reported. According to the Federal Shariat Court (FSC), the prevailing interest-based banking system in Pakistan was against the Sharia law as interest was absolute in all its forms according to the injunctions of Islam. "With the permission of the prime minister and consultation with the State Bank of Pakistan governor, I'm announcing on behalf of the federal government that the SBP and National Bank of Pakistan will withdraw their appeals from the Supreme Court and our government will fully try to as quickly as possible implement an Islamic system in Pakistan," Da

Indian Overseas Bank to revise rates on retail term deposits from Thursday

Public sector Indian Overseas Bank would increase the interest rates on its retail term deposits up to 60 basis points with effect from November 10, the city-based bank said on Wednesday. With the revision in interest rates, domestic and non-resident depositors would get a hike of up to 7.15 per cent for deposits with period of 444 days, three years and above. Term deposits for tenure of 270 days to one year and one year to three years, the interest rates have been increased by 60 basis points, the bank said in a statement here.

Rupee surges 48 paise to close at 81.92 per dollar, highest in a month

Stronger yuan, resumption of FPI flows into stocks bolster rupee

Bandhan Bank offers 7.5% interest rate on retail FDs for limited period

Rate applicable to both fresh deposits and renewals of up to Rs 2 crore for a tenure of 600 days, seniors to get 0.5% more

Customer protection the core of new RBI microfinance rules: Dy governor Rao

These measures, along with a cap on repayment obligations and steps to check over-indebtedness introduced by the regulator, will eventually bring down interest rates for the borrowers, he says

Following Federal Reserve goes out of fashion in 'messier' world economy

Bank of England the latest to push back against hawkish bets; Fed seen as most aggressive, driving record gains for dollar

Geopolitical situation a bigger worry for markets than rate hikes: Analysts

According to reports, North Korea has fired at least one ballistic missile toward its eastern sea, the latest in a series of weapons tests that have raised tensions in the region