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Bank of Baroda raises deposit rates

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Our Banking Bureau Mumbai
Last Updated : Feb 06 2013 | 6:11 AM IST
Bank of Baroda has raised interest rates on its domestic term deposits and non-resident rupee accounts by 25 basis points from today due to hardening of yields and competition to raise resources to fund credit growth.
 
The new rate for deposits with 181 days to less than a year maturity would be 5.25 per cent.
 
The rate for one year to less than two years is 5.5 per cent, two year to less than three years is 5.75 per cent, a BOB official said. The new rate for three years to less than five years is 6 per cent.
 
The bank has kept rates unchanged for deposits in two maturity buckets "� seven days to less than 180 days and five years to 10 years, he said. The state-owned bank has reviewed the market trends and decided to raise rates in response to the competition, the official said.
 
The tight liquidity in the market on the back of redemption of SBI's India Millennium Deposits (IMDs) and strong credit offtake in the third quarter is driving public sector banks to increase deposits rates, a Dena Bank official said.
 
Dena Bank raised deposit rates by 25 basis points in November and is getting ready to effect another hike of 25-50 basis points. Union Bank revised its domestic rates by 25-75 basis points across various maturities in the last week of December 2005.
 
Punjab National Bank also raised its term deposit rates across almost all maturities on January 1.

 

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First Published: Jan 03 2006 | 12:00 AM IST

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