OBC cuts fixed deposit rates by up to 1%

State-owned Oriental Bank of Commerce (OBC) on Thursday slashed fixed deposit rates by up to one per cent on select maturities.

The announcement comes on the heels of the Reserve Bank of India cutting key policy rate by 0.25 per cent earlier this month.

The fixed deposit rate for maturities ranging from 31-45 days has come down to six per cent from seven per cent, OBC said in a statement.

At the same time, term deposit of 180-269 days will earn 0.5 per cent lower interest rate at eight per cent from earlier rate of 8.50 per cent, while interest rate on 91-179 days has come down by 0.25 per cent at 7.75 per cent.

However, interest rate on 46-90 days deposit remains unchanged at seven per cent.

The revised FD rates effective on Thursday will apply to deposits below Rs 1 crore, it said. The bank lowered the short-term lending (repo) rate to 7.25 per cent from 7.50 per cent, lowest since May 2011 while retaining the cash reserve ratio for banks unchanged at four per cent.