Sundaram Finance, a leading Non Banking Finance Company having nearly 2.5 lakh depositors, has announced an upward revision in interest rates on fixed and cumulative deposits with effect from 1st October 2008.

Chennai-based firm will be paying 10.50 % per annum fixed deposits of 12 months, 11% per annum on 2 year and 3 year deposits. The previous interest rates were 10% for 1 year and 10.50% for 2 and 3 year deposits.

During an official release, the company stated that the latest modification will only be applicable to fresh deposits and renewals made from 01.10.2008. However, the Interest rates on existing deposits remain unchanged.

Sundaram Finance, incorporated in 1954 with the object of financing the purchase of commercial vehicles and passenger cars, today has the largest retail base of deposits amongst NBFCs in India. The firm has over 425 branches in India.

The shares of the company closed on Friday at Rs 252 on NSE, up 2% compared to previous close of Rs 274. It touched an intraday high and low of Rs 258 and Rs 240 respectively.