Indian Bank raises deposit rates 15bps after RBI rate hike
Business
Indian Bank is raising its deposit rates by 15 basis points for certain time periods, starting October 23.
This follows the Reserve Bank of India (RBI)'s recent rate hike and comes as the bank faces some cash flow challenges: its managing director, Binod Kumar, mentioned a big dip in bulk deposits and slower term deposit growth during the second quarter (Q2 2026).
Indian Bank raises FDs, adds FCNR-B
If you're looking at fixed deposits, the 555-day scheme will offer 6.8% (up from 6.65%), while the 777-day option will move to 6.75% (was 6.6%).
To help with liquidity, Indian Bank also brought in foreign currency non-resident-bank (FCNR-B) deposits, a move that fits into a broader trend across banks this year as they work to balance extra funds and shifting market conditions.