Utsav Fixed Deposit: IDBI Bank increases FD rate for limited period; check all details here

IDBI Bank on Tuesday, August 20 increased its Utsav Fixed Deposit scheme to 7.85 per cent for a 444-day tenure. The offer is valid for a limited period, the bank said in a statement today.

Utsav Fixed Deposit: Revised FD rate

The bank has increased the FD rate to 7.85 per cent and 7.75 per cent per annum on tenures of 444 days and 375 days, respectively.

This enhancement makes the Utsav Fixed Deposit an even more compelling option for customers seeking higher yields, it said.

Utsav Fixed Deposit: Offer period

This offer is valid till September 30, 2024, it said, adding, that customers can open an Utsav Fixed Deposit conveniently through the bank's website or mobile banking application or at any branch of the bank.

Besides this, IDBI Bank continues to offer competitive rates on other special tenures under the Utsav Fixed Deposit scheme. The 700-day tenure offers a peak rate of 7.70 per cent, while the 300-day tenure provides 7.55 per cent, it said.

Both the Finance Minister and RBI Governor have expressed concern over the slow pace of deposit growth as compared to credit growth.

RBI Governor Shaktikanta Das had flagged concerns over household savings moving towards alternative investment avenues and asked banks to mobilise deposits through innovative products and services by leveraging their vast branch network.

"Banks are taking greater recourse to short-term non-retail deposits and other instruments of liability to meet the incremental credit demand. This, as I emphasised elsewhere, may potentially expose the banking system to structural liquidity issues," he had said earlier this month.

On Monday, Finance Minister Nirmala Sitharaman while chairing review meeting with heads of public sector banks had asked them to make concerted efforts to garner deposits by conducting special drives.

Deposits have been growing 300-400 basis points lower than the credit growth in the last few months, creating an asset-liability mismatch for banks.

With agency inputs