State Bank of Bikaner and Jaipur, the largest associate lender of SBI, has increased the fixed deposit rates by 100 basis points to 10.75 per cent.

The bank stated in an official communiqué that for fixed deposits in between 2-3 years, the rate has been increased from 9.75 per cent to 10.75 per cent. However, the bank has kept interest rates for other maturities unchanged at the September 3 level when it last raised rates.

Last month, SBBJ raised the interest rate on term deposit in between 1-2 years by 50 basis points to 10.25 per cent.

Market experts believe that tight liquidity conditions compelled many banks including Punjab National Bank, Canara Bank and Union Bank of India to revise short-term interest rates upward.

State Bank of Bikaner and Jaipur reported a phenomenal rise in standalone net profit for the quarter ended September 2008. During the quarter, the profit of the bank rose 87.77% to Rs 114.06 crore from Rs 60.74 crore in the same quarter last year.