BoB hikes interest on deposits by 1.75%

Public sector lender Bank of Baroda has hiked deposit rates by up to 1.75 per cent with effect from today.

Public sector lender Bank of Baroda today hiked deposit rates by up to 1.75 per cent with effect from today.

Now deposits of 46-90 days maturity would have interest rates of 6.25 per cent,up from existing 4.50 per cent,BoB said in a regulatory filing to the BSE.

Besides,customers will get 9 per cent interest rate on deposits of 1-3 year and 3-10 year.

Interest rates for deposits of 271 days to less than a year would fetch interest rate of 7.75 per cent,higher than 7.50 per cent earlier.

Earlier this month,Punjab National Bank (PNB) had hiked the interest rates on deposits by 0.25 per cent to 9 per cent for maturity of one year with effect from today. However,country’s largest lender State Bank of India (SBI) had lowered rates on domestic term deposits of maturity of five years and more by 0.25 per cent to 8.50 per cent.

The decisions to alter deposits rates have come after the Reserve Bank,in its first quarterly monetary policy review last month,kept key interest rate unchanged. RBI,however,had lowered the Statutory Liquidity Ratio (SLR),the portion of deposits that banks are required to invest in government bonds,by one per cent to 23 per cent.