Date:30/12/2006 URL: http://www.thehindubusinessline.com/2006/12/30/stories/2006123003020600.htm

Back KVB hikes rate on seniors' deposits

Our Bureau

Coimbatore, Dec. 29

Karur Vysya Bank (KVB) offers 9.25 per cent interest on Senior Citizen Deposits, for period ranging between one and three years, said to be the highest in the industry. The bank has recently rolled out a deposit scheme — KVB 500. The sums deposited under this scheme would attract interest at 9 per cent and for tenure of 500 days.

The bank has increased the rate of interest on domestic term deposits by 50 to 75 basis points on various time brackets. It offers the highest rate of 8.75 per cent on deposits with tenure between 2 and 3 years, and at 8.5 per cent for the one to two-year deposits. The BPLR rate has also been hiked to 13.25 per cent (12.5 per cent). The bank has filed the draft offer document with SEBI and the NSE for issue of rights shares.