Going against the tide, LVB lowers deposit rates on select maturities ::Business Line

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At a time when most banks have resorted to raising their deposit rates, Lakshmi Vilas Bank has effected a downward revision in its domestic term deposit rates across select maturity periods, starting August 1. Bank sources maintain 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.

“Now, our rates are on a par with the other banks. Anyway, the earlier revision (upward) was intended for a limited period only,' the bank's Chief Executive, Mr P. R. Somasundaram said.

The bank has also increased its base rate from 10.5 per cent to 10.90 per cent from August 1