Now Reading: Shriram Finance hikes FD rates by up to 0.40% from 11 October
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Shriram Finance hikes FD rates by up to 0.40% from 11 October
Shriram Finance has raised fixed deposit interest rates by 0.15% to 0.40% across all tenures effective 11 October, the company announced. Senior citizens aged 60 or above get an additional 0.50% per annum, while women depositors receive an extra 0.05% per annum. The minimum deposit is Rs 5,000.
The revision follows the Reserve Bank of India's 7 October repo rate hike of 25 basis points to 5.50%, the first increase since February 2023. The highest revised rate of 8.35% per annum is available to senior citizens on deposits of 36 to 60 months. Shriram Finance also revised its Fixed Investment Plan rates from 11 October, with women receiving an identical 0.05% extra benefit.
Indian Opinion Analysis
The RBI's repo rate hike to 5.50% on 7 October has triggered the first FD rate revision from a major NBFC, signalling that deposit rates across the financial system may now move up. For Shriram Finance's depositors, the higher rates improve real returns on fixed-income instruments, though the 0.50% senior citizen and 0.05% women bonuses remain unchanged. The company's AAA ratings shield it from funding concerns, but the pass-through of the full 25 bps repo hike to depositors leaves room for further increases if the RBI tightens again. No next rate-setting date has been announced.
Source: livemint.com
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