Bank of India cuts deposit rates by 0.25-0.5 per cent

24 Jun 2009

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The state-owned Bank of India yesterday joined has reduced interest rates on rupee term deposits by 0.25 per cent to 0.50 percent across various maturities. The reduction comes into effect from 27 June, the public sector lender said in a release.

Under pressure from the Reserve Bank of India and the union government, a host of lenders, including the country's largest bank, the government-owned State Bank of India and largest private lender, ICICI Bank, HDFC Bank and its parent, home financier HDFC bank have recently reduced their deposit rates.

For a maturity period of 91-179 days and for deposits less than Rs1 crore, Bak of India has cut the interest rate from 5.50 per cent to 5 per cent, while for 180-269 days it has been revised downwards from 6.50 per cent to 6.25 per cent. For deposits with maturity of 270 days to 364 days, the new interest rate is 6.50 per cent from the earlier 6.75 per cent, it said.

For one year to less than two years, two years to less than three years, three years to less than five years and five years and above, the rate has been slashed from 7 per cent to 6.75 per cent.

The interest rate on floating rate deposit scheme will be 0.25 per cent over the term deposit rates applicable for the relevant tenures of deposits for maturities of three years and above on the day the deposit is made, the release added.

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