OBC raises fixed deposit rates by up to 3.5%

State-owned Oriental Bank of Commerce (OBC) today raised rates on high value fixed deposits by up to 3.5% on select maturities amidst tight liquidity conditions.

Deposit of Rs 15 lakh and Rs 1 crore for 31-45 days maturity period will earn 8.5% interest as against 5% earlier, the bank said in a statement.

At the same time, interest rate on 46-90 days fixed deposits have been raised by 3.25% to 9% while those on 91-179 days term deposits have been increased from 8% to 9%.

The new rates are effective from March 1, it added.

Besides, rates on select maturities of fixed deposits beyond Rs 1 crore have been revised upwards by 1%.

 

Banks are facing tight liquidity condition and have to borrow more than Rs 1.5 lakh crore from RBI on daily basis.

Tight liquidity conditions have also led to rise in rates of certificate of deposits and commercial paper issued by the banks.