Oriental Bank of Commerce hikes PLR by 50 bps

The Asset Liability Committee (AlCO) decided to increase the PLR from 13.25 per cent to 13.75 per cent to maintain its net interest margin, said a senior official of OBC.     

Besides, the bank has also revised deposits rates up to 50 basis points for some maturities.     
The new rates would be effective from July 15.     

 

In addition, OBC also launched special deposit scheme, which offers to pay 9.55 per cent and 10.05 per cent for the senior citizens.     

The scheme called Oriental Bank Akshay Kiran Deposit Scheme is for 500 days.     

The decision to hike PLR comes in the wake of RBI increasing short term lending (Repo) rate by 0.75 per cent to 8.5 per cent and increased the mandatory cash requirements for banks by 0.50 per cent to 8.75 per cent, to squeeze money supply for taming inflation.     

Major public sector lenders, notably State Bank of India, Punjab National Bank and Canara Bank, have already hiked their benchmark prime lending and deposit rates.