Bandhan Bank on Monday said it has hiked interest rates on fixed deposits by 25-50 basis points based on the maturity period.

The revised FD rates are applicable for retail deposits of up to Rs 2 crore and are effective from February 6, the Calcutta-based lender said in a statement. This is the bank’s second rate hike on fixed deposits in the last three months, following the hardening of rates by the RBI.

The highest rate that is being offered by the bank is 8.5 per cent for senior citizens and 8 per cent for others. This is for deposits with a tenure of 600 days.

Similarly, for the 1 year-599 days deposits, the revised interest rate now stands at 7 per cent, while senior citizens will get additional 50 basis points whereas for deposits of five years and up to 10 years, the interest rate for non-senior citizens is 5.60 per cent. For senior citizens it stands at 6.35 per cent.

Banks have been witnessing a robust demand for credit which has exceeded the deposit growth and this has prompted them to increase the deposit rates.

Jana Small Finance Bank had also announced a revision in its fixed deposit rates of less than Rs 2 crore. Non-senior citizens can now earn up to 8.10 per cent for deposits held for 2-3 years. Further, the small finance bank is offering an interest rate of 8.80 per cent for senior citizens.

Shares of Bandhan Bank on Monday closed at Rs 236.20, a gain of 3.71 per cent over the last close on the BSE.