Karnataka Bank hikes deposit interest rates

The Bank of Karnataka raised deposit interest rates for amounts up to 10 crores over various maturity periods. Bank will now offer 5.25% for deposits under 2 crores for 7 days to 90 days. The revised rate will be 5.60% on deposits of Rs 2 crore to Rs 10 crore over the same period.

The interest rates on deposits below 2 crore are going to be increased to 6.40% for a maturity period of 1 to 2 years. The rates for Rs 2 crore to Rs 10 crore for the same period will be revised by 6.50%.

The revised interest rates will be effective on September 29, 2022.

As many more auspicious festivals like Diwali are to follow, the bank said that Dussehra is the beginning of the festival season. Karnataka Bank greets its customers and prospective customers with a hike in term deposit interest rates, as well as a hike in term deposit interest rates, as part of the happiness and celebrations.

In June of this year, the bank had increased interest rates on its domestic and NRE term deposits for amounts below 2 crore. The rate of interest for 1 -- 2 years deposits was increased to 5.35 per cent and above two years to five years. The rate was 5.50 per cent.

The profit was mainly due to growth in core income and a decrease in bad loans.