Government-run lenders IDBI Bank and Oriental Bank of Commerce (OBC) on Monday increased interest rates for fixed deposits by up to 1.50 per cent in select maturities.

IDBI Bank announced that it would now pay an interest of 8.50 per cent on deposits of 46-200 days, considerably up from previous rate of 7 per cent for the 46 days to 90 days basket and 7.25 per cent for the 91 days to less than
6-month basket.

IDBI Bank also announced increases in its interest rates of 0.25 per cent for two other fixed deposit baskets. This bank also declared that customers would receive higher returns without any penalty for any premature withdrawal together with assured liquidity.

OBC also hiked its interest offering on fixed deposits. It increased interest by 0.25 per cent in the 1-2-year maturity bucket.

While IDBI Bank's new interest rates took effect from August 16th, OBC applied the new rates from August 12th.

Separately, private-sector lender Kotak Mahindra Bank hiked its benchmark lending rate by 0.25 per cent, from 9.75 per cent to 10 per cent. Effect from August 13, the new lending rate would make home, auto, corporate loans costlier.