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IDBI, OBC, BOI hike retail term deposit rates
January 06, 2011
Public sector lenders IDBI Bank,
Oriental Bank of Commerce (OBC) and Bank of India (BOI) on Tue
hiked interest rates on certain retail term deposit schemes on
account of the higher interest rate scenario, in line with
steps by some of their peers.
While IDBI and BOI hiked interest rates on retail deposits by
up to 0.75 percent varying according to maturities, OBC went
for an upward revision of 25 basis points on certain
The rate hike has been done in view of "credit demand,
inflation and liquidity scenario", IDBI said on Tuesday.
The rate hike announced by the bank is to be immediately
effective and with the revision, the highest interest on
retail term deposits would be 9.25 percent.
For deposits of up to Rs 15 lakh, the maximum hike is of 75
The interest rate on deposits with a maturity period of 270
days and above, but less than one year, has been increased by
75 basis points to 8 percent.
Furthermore, the rates for deposits with a tenor between 366
days and 499 days have been hiked by 35 basis points to 8.50
percent, it added.
For retail term deposits with a maturity period of 500 days,
the bank has revised the interest rate to 9 percent, up 50
basis points from the prevailing rate.
Another major hike will be effected on deposits with a tenor
between 500 days and 1,099. The rate of interest on such
retail term deposits has been increased by 75 basis points to
Besides, for deposits with a maturity of 1,100 days, the new
rate will be 9.25 percent, up 50 basis points.
For deposits of up to Rs 15 lakh with a duration of seven year
to 10 years, rates have been revised upward by 25 basis points
to 8.75 percent.
Similarly, deposits between Rs 15 lakh and Rs 1 crore have
also been put under rate hike.
Meanwhile, the Mumbai-headquartered BOI announced revision of
rates effective yesterday for certain deposit of minimum Rs 1
The bank has made revisions across deposit sizes, starting
from those under Rs 15 lakh to Rs 5 crore and above.
Under the revised interest rates, a 180-269 days deposit under
Rs 15 lakh will fetch an interest of 7.25 percent as against
6.50 percent earlier, while one for 270-364 days will earn the
depositor 7.50 percent per annum compared to 6.75 percent
For BOI's deposits of Rs 1 crore and above, the daily rate of
interest will be quoted by the bank's treasury department on
the core banking system (CBS) ticker after taking into account
liquidity position and the market conditions for one year and
above, but less than two years bucket.
OBC also went for a revision of its term deposits in three
categories -- less than Rs 15 lakh, Rs 15 lakh-Rs 1 crore and
Rs 1 crore-Rs 5 crore.
For deposits with a maturity of 300 days in all segments it
fixed an interest of 7.50 percent, down 25 basis points from
the earlier existing figure of 7.75 percent.
However, for deposits with a maturity of one year to 499 days
and 501 days to less than two years in all segments, it has
upped rates by 25 basis points to 8.25 percent.
OBC's new rates will be effective from 5th January.
Other lenders such as Dena Bank, Kotak Mahindra Bank, State
Bank of India and HDFC Bank among others have already hiked
their retail term-deposit rates.