OBC raises fixed deposit rates by up to 0.5%

State-owned Oriental Bank of Commerce (OBC) today raised fixed deposits rate on select maturities by up to 0.5%.

 

Term deposit with maturity 91-179 days would earn 0.25% higher interest rate at 8.75%, OBC said in a statement.

 

With the revision, term deposit between 180 days to 1 year would earn 9% against existing 8.50%, it said.

 

The new rates would be effective from November 4, it added.

 

Yesterday, State Bank of India (SBI) raised fixed deposit rate by 0.2% on select maturity.

 

Term deposit between 180-210 days attracts interest rate of 7% against earlier rate 6.80%.

 

However, there is no change in the interest rates for other maturities in less than Rs 1 crore bracket.

 

Earlier this week, RBI raised short-term lending (repo) rate by 0.25% to 7.75% making cost of fund expensive for the banks.

 

At the same time, the RBI lowered marginal standing facility (MSF) rate by a similar margin to 8.75%.

 

Accordingly, the bank rate is reduced to 8.75% with immediate effect. Consequently, the reverse repo rate is adjusted upward to 6.75%.

 

The RBI has left unchanged other rates such as the cash reserve ratio at 4% and the mandatory holdings in government securities and other liquid assets as a solvency measure (SLR) at 23%. PTI DP