Singapore’s subsidiary of its biggest bank, the DBS Bank announced its hike on interest rates on its fixed deposits by 125 basis points. The hike in interest rates comes when most of the banks overwhelmed by the global financial turmoil are resorting to slash down their interest rates with some PSU’s already lowering down their benchmark lending rate to 75 basis points.

The bank has increased its fixed deposits to 10.75 per cent from the present 9.5 per cent for the period between 181 days to one year and for a term deposit of one to two years an increment of 11.25 per cent has been done as against 10.25 per cent.

The statement released by the bank stated that, "this will provide a very competitive opportunity to DBS Bank customers who can now benefit from the best interest rates offered by any bank in the country". The bank is also looking forward to offer different maturity options beginning from 7 days to 180 days with different fixed deposit interest rates as per the customers' demand.

In case of the long term fixed deposits with the maturity period of 2 to 5 years as well as for ordinary fixed deposits and deposits for the senior citizens the bank plans for ten percent hike in interest rates. The subsidiary of Singapore’s DBS Group operates through its different branches at Bengaluru, Chennai, Delhi, Kolkata, Mumbai and Pune.