BoB hikes deposit rates by 25bps

Bank of Baroda (BoB) is planning to increase deposit rates by 25bps with effect from January 27, 2006 or February 1, 2006, but is not planning to change the lending rates.

Avinash Mahajan, executive director of BoB, said the bank, in a meeting yesterday, had taken a decision to increase deposit rates by 25 bps.

"The decision to increase the deposit rates coincided with the RBI move today," he added.

RBI, in its third quarter review of the monetary policy, increased the repo rates by 0.25%.

Mahajan said measures taken by the central bank in the third quarter review would have "marginal impact" on the interest rates-  at least in the short-term.