Federal Bank down 5% as interest rates raise on deposits

Moneycontrol Bureau

Federal Bank shares dropped more than 5 percent intraday to touch over 3-year low of Rs 271.60 Thursday after the bank revised interest rates on resident and non-resident Indian (NRI) deposits.

For resident deposits, interest rate for band of '60 days to 119 days' has been increased to 8.5 percent from 7 percent.

In case of NRI term deposits for three years and above, the bank has increased the rate to 9 percent from 8.75 percent.

At 15:07 hours IST, the stock lost 2.74 percent to Rs 278.60 on the Bombay Stock Exchange.

It plunged 27 percent in past one month and 40 percent in three months.

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