Bajaj Finance raises fixed deposit interest rates across multiple tenures
What happened
Bajaj Finance increased interest rates on its fixed deposits by 15 to 40 basis points across tenures ranging from 12 to 60 months, effective Wednesday. The highest increase was offered on longer-term deposits, with rates for 31 to 60 months rising by 35 basis points for regular depositors. For example, the rate for 31 to 60 months for regular depositors increased from 7.40% to 7.75% per annum.
From livemint.com
Why it matters
The rate hike by Bajaj Finance, one of India’s largest non-banking financial companies, impacts the competitive landscape for deposit rates in India. This move puts pressure on other financial institutions to adjust their deposit offerings to retain savings.
From livemint.com
Who's involved
- Bajaj FinanceIndian non-banking financial company raising deposit rates
- Bajaj FinservCorporate umbrella under which Bajaj Finance operates
- Reserve Bank of IndiaCentral bank providing regulatory framework for Bajaj Finance
- Securities and Exchange Board of IndiaGovernment agency exercising regulatory oversight over Bajaj Finance
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- State Bank of IndiaSpeculative
State Bank of India might face increased competition in deposit rates, potentially affecting its funding costs.
- ICICI BankSpeculative
ICICI Bank might face increased competition in deposit rates, potentially affecting its funding costs.
- Axis BankSpeculative
Axis Bank might face increased competition in deposit rates, potentially affecting its funding costs.
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The entities involved
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Bajaj Finance
Indian non-banking financial company