Sundaram BNP Paribas Home Finance recently announced that it has increased the interest rates on fixed deposits (FDs) for certain maturity periods. This change will be effective 1 August 2018 onwards. The company said that the interest rates for fresh fixed deposits and renewals will increase to 7.50% p.a. from 7% p.a. for the 12-month and 18-month maturities, while the interest rate would increase to 7.75% p.a. from 7.25% p.a. for the 24-month and 36-month maturities.
The FD interest rates for senior citizens have also been increased to 8% p.a. from 7.5% p.a. for the 12-month and 18-month maturities. Similarly, the interest rates for FD tenures of 24 months and 36 months have been raised to 8.25 p.a. from 7.75 p.a. for senior citizens.
The company reported that the total deposits crossed Rs.2,500 crore this financial year. In the previous fiscal, Sundaram Finance mobilised new deposits aggregating to a total of Rs.450.53 crore, with the percentage of FDs that were renewed came up to almost 80%.
Sundaram Finance has a customer base of nearly 2.5 lakh depositors. The company, which was established in the year 1954, provides finances for passenger cars, commercial vehicles, and construction equipment. Further, the company also offers home loans, non-life/general insurance solutions, mutual funds, and a number of other financial services to customers. Sundaram Finance has more than 600 branches spread across various cities and towns across India.
Source: The Times of India