Bank of India (BoI) today slashed interest rate on fixed deposits by 0.25 per cent on select maturities while Union Bank of India (UBI) has announced reduction in rate for farm loans by up to 1.75 per cent.
Bank of India's decision to cut interest rates on FDs incidentally comes four days after State Bank of India raised rates on select fixed deposits by 0.25 per cent.
BoI informed the BSE that interest rate on fixed deposit for maturity between 2-3 years has been reduced by 0.25 per cent to 9 per cent, while 1,111-days term deposit will attract 9.10 per cent as against 9.30 per cent.
With the revision, BoI's interest rate on 3-10 years fixed deposit would come down to 9 from 9.25 per cent.
The Mumbai-based bank had last revised the interest rate on fixed deposits on March 22 this year.
The new rates are effective from July 2, it said.
However, interest rates on other maturities remain unchanged.
Meanwhile, another public sector bank UBI also slashed interest rate on various categories of farm loans by up to 1.75 per cent.
Union Bank will offer crop loans, investment credit and loans for allied activities up to Rs 50,000 at base rate only.
The interest rate for lending to self help groups (SHGs) has also been reduced by 1.75 per cent, UBI said in a statement.
The revised interest rates are effective from July 1. At present, the base rate of UBI is 10.50 per cent.
It is to be noted that a hike in interest rate by SBI is surprising also because it followed a cut of 0.20 per cent in base rate by private lender HDFC Bank.
SBI's term deposits of three years but less than five years earns an interest rate of 9 per cent, up from 8.75 per cent.
