News19 October 2026By BlinkMoney Editorial

Most Large Banks Have Kept Fixed Deposit Rates Unchanged Since the RBI Hike, While Bajaj and Shriram Finance Raised Theirs

As of 19 October 2026, most large banks have not changed fixed deposit rates since the RBI's 7 October repo rate hike, while Bajaj Finance and Shriram Finance have raised theirs by up to 40 basis points.

As of 19 October 2026, most large Indian banks have not raised fixed deposit (FD) rates since the Reserve Bank of India (RBI) increased the repo rate by 25 basis points to 5.50% on 7 October. The clearest increases so far come from non-bank lenders. Bajaj Finance raised its FD rates by 15 to 40 basis points from 7 October, and Shriram Finance did so from 11 October. This update extends the 12 October check, which found no large-bank deposit increase, to the 19 October status.

Loan rates moved faster than deposit rates. Several banks passed the 25 basis point hike into their repo-linked lending rates within a day or two, while deposit pricing has stayed close to its early-October level.

Lending rates moved within a day or two

Punjab National Bank (PNB) raised its repo-linked lending rate (RLLR) from 8.10% to 8.35%, effective 8 October 2026. The RLLR includes a 0.35% business strategy premium. PNB kept its marginal cost of lending rate (MCLR) and base rate unchanged, so the increase applies to loans linked to the RLLR and not to loans on the MCLR or base rate. [PNB official page]

A CNBC-TV18 table of repo-linked revisions also lists a 25 basis point increase at Bank of India, to 8.35% from 8.10%, effective 7 October, and at Karur Vysya Bank, to 8.80% from 8.55%, effective 8 October. Business Standard reported that the pass-through to deposit rates is likely to be slow, because banks have been flush with liquidity from foreign currency non-resident (FCNR(B)) deposits. It also said rates on fresh deposits could harden as short-term money market rates rose in recent weeks.

Large banks: headline FD rates are largely unchanged

The table below uses the 1 to 2 year general rate, below Rs 3 crore, from a BankBazaar compilation of bank websites dated 16 October. The "effective" column is the date the compilation shows for each bank's current schedule. None of these dates falls after 7 October, except ICICI Bank's, discussed below.

Bank	1 to 2 year FD rate	Effective date shown
State Bank of India	6.45%	15 Dec 2025
HDFC Bank	6.45%	19 Aug 2026
ICICI Bank	6.30%	16 Oct 2026
Punjab National Bank	6.60%	1 Jun 2026
Bank of Baroda	6.60%	12 Jun 2026
Bank of India	6.60%	18 May 2026
Canara Bank	6.60%	17 Mar 2026
Union Bank	6.55%	4 Aug 2026
Axis Bank	6.50%	30 Sep 2026
Kotak Mahindra Bank	6.65%	23 Sep 2026

ICICI Bank's FD page carries a header of "w.e.f. October 19, 2026", and press comparisons give mid-October dates of 13 and 16 October for its schedule. Its 1 to 5 year rates match the levels in comparison tables published before the RBI decision, so this article does not count ICICI as having raised deposit rates.

State Bank of India's NRI deposit pages show separate revisions. Its FCNR(B) rates carry an effective date of 15 October 2026, and its NRE bulk rates above Rs 25 crore carry one of 18 October 2026. These apply to NRI and bulk accounts and are not the resident retail FD rates in the table above.

Bajaj Finance and Shriram Finance raised rates

Bajaj Finance raised FD rates on 12 to 60 month tenures, effective 7 October 2026. Its revised cumulative rates for regular depositors are 6.80% for 12 to 17 months (from 6.60%), 7.00% for 18 to 30 months (from 6.85%) and 7.75% for 31 to 60 months (from 7.40%). Senior citizens get an extra 0.40 percentage points, which takes the 31 to 60 month rate to 8.15%. Renewals get a further 0.10 percentage points. The rates apply to deposits from Rs 15,000 to Rs 3 crore. Bajaj says its FD programme carries CRISIL and ICRA AAA/Stable ratings; those are the rating agencies' assessments of the company, not a guarantee of the deposit.

Shriram Finance raised rates on FDs of up to Rs 10 crore, effective 11 October 2026. Its 12-month rate is now 7.00% (from 6.85%). The 15-month digital-only rate and the 24 to 35 month rate are now 7.50% (from 7.10%), and the 36 to 60 month rate is now 7.85% (from 7.50%), according to the company's notice.

Both are non-bank lenders. Bank deposits carry DICGC insurance up to Rs 5 lakh per depositor per bank, but the Bajaj and Shriram products are NBFC deposits and do not carry that cover. Their returns come with the credit risk of the issuing company.

Among smaller banks, Suryoday Small Finance Bank shows 8.01% for 1 to 2 year deposits, effective 16 October, in the same BankBazaar compilation. A rate tracker also logged both increases and cuts among regional rural banks and small finance banks between 18 September and 19 October. This article does not rely on those individual entries.

Why the pattern may not last

Banks have signalled caution. The State Bank of India chairman, C S Setty, said banks may not raise deposit rates over the next two to three months because of comfortable liquidity, according to a 14 October report by Upstox. Individual banks can still change rates for their own funding needs. Mint reported on 7 October that Governor Sanjay Malhotra said the liquidity surplus is likely to normalise by the end of the financial year. That comment was about liquidity, not a decision on deposit rates, but it means the current cushion may not last.

Short-term market rates are the other pressure point. Business Standard reported that these rates had risen in recent weeks, which could push up rates on fresh deposits even while existing rates hold.

What the current rates mean for a saver

Inflation is the benchmark for a fixed deposit's real return. The September 2026 CPI inflation rate was 5.54%, according to the Ministry of Statistics and Programme Implementation (MoSPI). At 6.45%, a 1 to 2 year FD earns about 0.9 percentage points above that rate before tax. At Bajaj's 7.75% for 31 to 60 months, the gap is about 2.2 points before tax, but the deposit carries company credit risk and no DICGC cover.

A rate already locked on an existing FD does not change until maturity. For new deposits and renewals, the bank's published schedule is the reference point, because RBI's amended deposit-rate directions require banks to pay the rates on their published schedules from 1 October 2026.

This article is for general information only and does not constitute investment, tax, legal, or financial advice. Interest rates and policy decisions can change. Before depositing, check the bank's or company's current published rate schedule, tenure, premature withdrawal terms and any tax on interest, and consider speaking with a qualified financial adviser for advice specific to individual circumstances.

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