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Three public sector banks IDBI, OBC, BOI hike retail term deposit rates
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merisarkar news service
New Delhi, January 06, 2011 |
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IDBI, OBC, BOI hiked rates
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Public sector lenders IDBI Bank, Oriental Bank of Commerce (OBC) and Bank of India (BOI) on Tue hiked interest rates on certain retail term deposit schemes on account of the higher interest rate scenario, in line with steps taken by some other private and private sector banks.
While IDBI and BOI hiked interest rates on retail deposits by up to 0.75 percent varying according to maturities, OBC went for an upward revision of 25 basis points on certain offerings.
The rate hike has been done in view of "credit demand, inflation and liquidity scenario", IDBI said on Tuesday.
The rate hike announced by the bank is to be immediately effective and with the revision, the highest interest on retail term deposits would be 9.25 percent.
For deposits of up to Rs 15 lakh, the maximum hike is of 75 basis points.
The interest rate on deposits with a maturity period of 270 days and above, but less than one year, has been increased by 75 basis points to 8 percent.
Furthermore, the rates for deposits with a tenor between 366 days and 499 days have been hiked by 35 basis points to 8.50 percent, it added.
For retail term deposits with a maturity period of 500 days, the bank has revised the interest rate to 9 percent, up 50 basis points from the prevailing rate.
Another major hike will be effected on deposits with a tenor between 500 days and 1,099. The rate of interest on such retail term deposits has been increased by 75 basis points to 9 percent.
Besides, for deposits with a maturity of 1,100 days, the new rate will be 9.25 percent, up 50 basis points.
For deposits of up to Rs 15 lakh with a duration of seven year to 10 years, rates have been revised upward by 25 basis points to 8.75 percent.
Similarly, deposits between Rs 15 lakh and Rs 1 crore have also been put under rate hike.
Meanwhile, the Mumbai-headquartered BOI announced revision of rates effective yesterday for certain deposit of minimum Rs 1 lakh.
The bank has made revisions across deposit sizes, starting from those under Rs 15 lakh to Rs 5 crore and above.
Under the revised interest rates, a 180-269 days deposit under Rs 15 lakh will fetch an interest of 7.25 percent as against 6.50 percent earlier, while one for 270-364 days will earn the depositor 7.50 percent per annum compared to 6.75 percent earlier.
For BOI's deposits of Rs 1 crore and above, the daily rate of interest will be quoted by the bank's treasury department on the core banking system (CBS) ticker after taking into account liquidity position and the market conditions for one year and above, but less than two years bucket.
OBC also went for a revision of its term deposits in three categories -- less than Rs 15 lakh, Rs 15 lakh-Rs 1 crore and Rs 1 crore-Rs 5 crore.
For deposits with a maturity of 300 days in all segments it fixed an interest of 7.50 percent, down 25 basis points from the earlier existing figure of 7.75 percent.
However, for deposits with a maturity of one year to 499 days and 501 days to less than two years in all segments, it has upped rates by 25 basis points to 8.25 percent.
OBC's new rates will be effective from 5th January.
Other lenders such as Dena Bank, Kotak Mahindra Bank, State Bank of India and HDFC Bank among others have already hiked their retail term-deposit rates.
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