Oriental Bank cuts fixed deposit rates by up to 0.5%

The bank will also look at cutting base rate or minimum lending rate soon

Four days after rate cut by the RBI, Oriental Bank of Commerce (OBC) today slashed fixed deposit rate across various maturities by up to 0.50%.

The bank would also look at cutting base rate or minimum lending rate soon. The base rate of the bank at present is 10.25%.

"For deposits having maturity between 46-90 days, the new interest rate will be 6.75% from the existing 7%," OBC said in a statement.

Similarly, the bank has lowered interest rate by 0.25% on the fixed deposit between 91-179 days. The new rate would be 7.75% from the existing 8%.

For term deposits having a maturity period of 2-10 years, the rate has been revised downward by 0.50% to 8.25% from existing 8.75%.

The new rate would be effective from January 20, it added.

Last week, RBI reduced the benchmark interest rate by 0.25% to 7.75% with a view to boost growth.

The rate cut by RBI came after a gap of over 20 months. The RBI had last reduced repo rate by 0.25% in its May 3, 2013 policy review.

Soon after the rate cut, United Bank of India had slashed its base rate or the minimum lending rate by 0.25% to 10%.