Andhra Bank hikes rates to woo short-term bulk deposits

Andhra Bank has raised the interest rate on the certain short-term buckets by up to 200 basis points for large-sized (read bulk) deposits. This is being done to replace deposits, which are due to mature. “There is going to be outflow of some deposits on maturity. We want to replace them at a lower cost,” said a bank official. The public sector bank will offer 8% on 91-119 days deposits compared with 6.50% earlier and 8.50% on 120-179 days deposits from 6.25% earlier.