A recent press report said that Lakshmi Vilas Bank has effected a downward revision in its domestic term deposit rates across select maturity periods, starting August 1.
Reports said that the bank sources have maintained that this downward revision in the short-term deposit rates (of one year and below) has been made purely from an ALM (asset-liability management) perspective.
The effective rate on the 91-180 day and 181–270 day deposits has been reduced by 100 bps to 8 per cent and 8.25 per cent, respectively. On deposits with a time period of 271-364 days, the effective cut has been 80 bps to 8.50 per cent from the earlier level of 9.3 per cent.
Mr. P. R. Somasundaram, the bank’s Chief Executive said that the bank’s rates are on a par with the other banks but the earlier revision (upward) is intended for a limited period only. The bank has also increased its base rate from 10.5 per cent to 10.90 per cent from August 1. The bank offers home loan, personal loan, business loan, vehicle loan, educational loan etc.