Bank of India (BoI) has hiked the deposit rate on its domestic term deposits of 30-90 days maturity from 8-9 per cent to 12.5 per cent.
With this move, BoI has joined the bandwagon of banks hiking short term deposit rates as a response to the measures announced by the Reserve Bank of India on January 16. Led by foreign banks, private and public sector banks, too, have been compelled to fine tune the rates offered by them on short term deposits to competitive levels.
RBIs move of hiking CRR and Bank Rate and slashing refinance facilities had effectively squeezed the system.
The revised rates announced by BoI are applicable from March 9. The decision was taken at a meeting of BoIs asset-liabilities panel, said a bank release here.
According to new structure, domestic term deposits of 30 days-90 days duration would earn 12.5 per cent, 91 days-179 days- 9.5 per cent, 180 days-one year- 10 per cent, over one year and up to two years- 10.5 per cent, over two years and up to three years- 11 per cent, and over three years- 12 per cent.
