Lakshmi Vilas Bank raises deposit rates by 1%

Mumbai: Private lender Lakshmi Vilas Bank on Tuesday raised its savings deposit rates by 1 percentage point to up to 6 percent.

The bank, which had a low share of the cheaper current and savings account deposits at 16.7 percent as of March, will offer 5 percent interest on saving bank deposits of up to Rs 5 lakh, it said in a statement.

For deposits of over Rs 5 lakh, its offering has been moved up to 6 percent. The bank had last raised the saving bank deposit offering in September 2014.

The latest revision in rates is applicable from today and the interest will be calculated on a daily basis.

After RBI de-regulated interest rates in 2011, a slew of private sector lenders, including Yes Bank, Kotak Mahindra Bank and IndusInd Bank had hiked their offerings to garner more sticky saving deposits.

However, over the last year, many of them have revised down their offerings.

"New interest rate is the best among the peer banks, we want to give the maximum returns to our valued customers," LVB's chief executive and managing director Rakesh Sharma said.