Bank of Baroda (BoB) has slashed interest rates on term deposits up to Rs 15 lakh by 25-75 basis points across maturities. The move comes after the Reserve Bank of India (RBI) pared savings bank and repo rates by 50 basis points on Budget day.
The maximum interest rate that BoB will pay to a fixed deposit holder from March 10, 2003, will be 5.50 per cent as against six per cent earlier. In early February, the bank had raised deposit rates by 25-50 basis points as yields on gilts started moving northwards.
In the 15-45 days maturity bucket, the new interest rate will be 4.50 per cent (currently 4.75 per cent ); 46-90 days at 4.75 per cent (5.25 per cent); 91-180 days at 5 per cent (5.50 per cent); 181 days to less than one year at 5 per cent (5.75 per cent); one year to less than three years at 5.25 per cent (6 per cent); and three years and above at 5.50 per cent (6.00 per cent).
More From This Section
On term deposits over Rs 15 lakh and up to Rs one crore, the bank will pay an extra 25 basis points to the deposit holders. Interest rates payable on non-resident external deposits will be at par with those applicable to domestic term deposits up to Rs 15 lakh.
Regarding implementation of the band of two per cent above and below the PLR for the small scale industry and agriculture sector as announced in the budget, the bank said it is awaiting communication on this from the Indian Banks