IDBI Bank Hikes Utsav FD Rates: Up to 7.85%

IDBI Bank has updated its Utsav Fixed Deposit scheme, offering higher investment returns. The bank has increased rates for special deposit periods, with the highest rate now at 7.85% per year.

For deposits with a 444-day term, the interest rate is 7.85% per year, and for a 375-day term, customers can earn 7.75% per year. These new interest rates are part of a special offer available until September 30, 2024. Customers who want to take advantage of this offer can open a Utsav Fixed Deposit through the bank’s website, mobile app, or any IDBI Bank branch.

Along with the new rates, IDBI Bank still offers good returns on other special deposit terms in the Utsav Fixed Deposit scheme. For example, the 700-day term gives an interest rate of 7.70% per year, and the 300-day term offers 7.55% per year. Since interest rates are important for savers and investors, analysts believe this update will likely be well-received. Investors are advised to consider these updated rates when planning their finances, noting that the offer is only available for a limited time.

Financial Highlights

IDBI Bank reported a 40% year-on-year increase in net profit, reaching ₹1,719 crore for the first quarter ending June 2024 (Q1 FY25). This is up from ₹1,224 crore in the same quarter of FY24.

The bank attributed this growth to an 80% drop in provisions and taxes, which fell to ₹356 crore in Q1 FY25 from ₹1,795 crore in Q1 FY24. However, net interest income (NII) decreased by 19% year-on-year to ₹3,233 crore in Q1 FY25, down from ₹3,998 crore in the previous year. The decline was partly due to a significant interest recovery from non-performing assets (NPAs) of ₹1,000 crore in Q1 FY24.

About IDBI Bank Ltd

IDBI Bank Ltd operates as a full-service universal bank, serving all types of customers. It has a rich history dating back to its predecessor, the Industrial Development Bank of India (IDBI), which was established in 1964 under the Industrial Development Bank of India Act. Originally a wholly owned subsidiary of the Reserve Bank of India, IDBI functioned as a Development Financial Institution (DFI) supporting the Indian industrial sector until 2004.

On August 21, 2024, the share price of IDBI Bank Ltd opened at ₹96.95, touching the day’s high of ₹98.04 as of 11:11 AM on NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.