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. Also Read - Won't raise rates now; see NIMs at 3.5-3.6%: SBI