BoB cuts deposit rates by 0.25-0.75%

Bank of Baroda (BoB) has become the first bank to take a cue from the finance minister’s hint on a still softer interest rate regime. BoB’s board, which met here on Monday, decided to cut its deposit rates by 25 to 75 basis points (bps) from March 10. The bank has also brought down the rate charged on revolving credit to credit card users to 2.25 per cent from the earlier rate of 2.5 to three per cent, bank’s executive director Arun Khandelwal said. The move follows the softer interest rate regime being continued by the Centre and the RBI, Dr Khandelwal said. RBI has announced a cut in savings bank rate and repo rates by 50 bps to 3.5 per cent and five per cent the same evening on budget day.

The new rates for deposits up to Rs 15 lakh are: for 15-45 days it is 4.5% (4.75 % earlier); 46-90 days at 4.75% (5.25%); 91-180 days 5% (5.50%); 181 days to one year five per cent (5.75%); above one year and up to three years at 5.25 % (6 %); for deposits above three years the rate is 5.5 % (down from 6%), a BoB official said. Above Rs 15 lakh, the rate offered is 25 bps more than that offered on deposits below Rs 15 lakh. Other banks are going slow in cutting their deposits rates.