 "Bank of Baroda")
After State Bank of India’s up to 50 basis points (bps) hike in deposit rates, another public sector lender, Bank of Baroda, has increased interest rates on domestic retail term deposits by up to 125 basis points in various maturity buckets. The revised rates will come into effect from December 29, 2023.
The new rates will be applicable for domestic deposits below Rs two crore, including non-resident Indian ordinary (NRO), BOB said in a statement.
BoB said the increase in rates is largely focused on shorter-term maturity buckets, specifically those less than one year. Increasing interest rates in shorter-term maturities will not only greatly benefit depositors who keep deposits for shorter maturities but will also contribute to the Bank's objective of balancing and optimising the overall cost of deposits and protecting its Net Interest Margin (NIM). This was also in line with the Bank’s strategy to increase its share of shorter-term retail term deposits.
Ravindra Singh Negi, Chief General Manager - Retail Liabilities & NRI Business, BOB said, 'We believe this step will not only attract more customers as they earn more on their savings but will also help the Bank optimise its cost of deposits, thereby safeguarding our NIM.'
