Bank of Baroda raises fixed deposit rates by up to 0.50%

New Delhi: State-owned Bank of Baroda (BoB) today raised fixed deposit rates on select maturities by 0.50 percent, reflecting the tightening of liquidity conditions.

Term deposits of 271 days to less than 1 year will now earns 0.5 percent higher interest rate at 8.25 percent as compared existing 7.75 percent, BoB said in a statement.

With the revision, the interest rate on 1-6 years three months fixed deposit would go up by 0.30 percent to 9.05 percent, from 8.75 percent. At the same time, 6 years three months to 10 years will also earn similar interest rate of 9.05 percent, up 0.20 percent.

Term deposit 1,111 days, would also earn higher interest rate of 9.05 percent from existing 8.90 percent.

However, the bank has left interest rate unchanged for deposits less than 271 days.

The new rates would be applicable from tomorrow, it said.

Decision of deposit rate hike come days after the RBI raised the policy rate by 0.25 percent in its fight to keep inflation under check.

The repo rate or the short term lending rate has been increased by 25 basis points to 7.5 percent from 7.25 percent with immediate effect. One basis point is equal to 0.01 percentage point.

The cash reserve ratio (CRR), the portion of deposits that banks are required to maintain with the RBI in cash, unchanged at 4 percent.

At the same time, the RBI reduced the minimum daily maintenance of CRR from 99 per cent of the requirement to 95 percent effective from September 21, a move aimed at inducing liquidity into the system.

Earlier this month, another public sector bank Oriental Bank of Commerce (OBC) raised interest rates by 0.5 percentage points on select term deposits.

PTI