Suryoday Small Finance Bank (SSFB) has upped interest rates on fixed deposits (FDs) of less than ₹2 crore in the one to five-year tenor by 49 to 160 basis points with effect from May 5, 2023.

The bank is offering 9 per cent and above interest rate on two maturity buckets: 999 days and five years.

Following the revision, the highest interest rate the bank is offering is 9.10 per cent on FDs of five years tenor against 7.50 per cent earlier. Senior citizens will now earn 9.60 per cent interest on this tenor.

Also read: Inclusion loans will be 50% of our book: Baskar Babu, MD & CEO, SSFB

On the 999 days maturity bucket, SSFB is now offering 9 per cent interest against 8.51 per cent earlier.

R Baskar Babu, MD & CEO, SSFB, said the higher FD rates offer is for a limited period -- from 5 May till 30 May -- in order to build up the liabilities further. This, in turn, can help bring down the credit-deposit ratio from about 120 per cent to about 110 per cent.

The bank is also offering interest rates up to 7 per cent to its savings account customers in above ₹5 lakh up to ₹2 crore slab.

The upward revision in FDs comes in the backdrop of improved credit offtake in the banking system and RBI focussing on withdrawal of accommodation.

SSFB revised interest rates on FDs in March 2023. The bank then increased interest rates in 5 to 10-year tenor by 75 to 125 bps. It had also revised interest rates on savings account up to 200 bps.

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