Amidst Rising Inflation, Axis Bank Increases Interest Rates On Fixed Deposits: Offers Upto 5.75% Interest

The third largest private sector bank in the country, Axis Bank, has raised interest rates on fixed deposits for various tenors. 

New Interest Rates On Fixed Deposits

The private sector lender’s new rates will come into effect from May 12, 2022, as per the Axis Bank website.

Basically, the bank is offering term deposits ranging from seven to ten years. 

Now, Axis Bank will pay interest rates in the range of 2.5 percent to 5.75 percent across various FD tenors, considering the latest interest rate hike.

It is noteworthy here that on all tenures, the senior citizens will receive 0.50 percent more. 

So now, the senior citizens will now get an interest rate of 2.50 percent to 6.50 percent on deposits maturing in seven days to less than 10 years following the most recent interest rate modification.

Interest Rates For Different Tenure

Notably, the interest rates are raised above the tenure of nine months. 

Axis bank has increased the rate to 4.75 percent For tenure from 9 months to less than one year. 

Further, for the fixed deposit ranging from one year to 15 months, the bank will pay interest of 5.25 percent after the hike. 

Similarly, for the tenure ranging from 15 months to less than 2 years, the bank will offer 5.30 percent for regular individuals. 

At the same time, for tenure from 2 years to less than 5 years, the lender will offer 5.60 percent.

And the fixed deposits maturing between 5-10 years will attract an interest rate of 5.75 percent.

The more detailed information is provided in the chart below.

Image Source  – https://economictimes.indiatimes.com/

Steady Growth For Axis Bank

So far, Axis Bank offers a wide range of banking services in India.

It offers includes cash and credit management services, retail banking, investment management and treasury services amongst others. 

Coming to performance, it’s NII up 13.3% YoY (+17% QoQ), a steady growth in NII led to operating profit growth of 13% YoY with stable NIM up of 3.49%. 

For the same time, the CASA deposits increased by 19.3% YoY (-4.2% QoQ) which will lead to low cost of funds and help improve margins. 

Further, the access to Citi bank’s consumer business division will help Axis bank to grow its deposits and advances.

Hence, stabilizing its asset quality driving banks’ performance over the period.