Bank of Baroda, a leading public sector bank, has announced a substantial increase in domestic deposit rates by 1.25 percent, encompassing Non-Resident Ordinary (NRO) term deposits as well.
This hike in interest rates applies to deposits below Rs 2 crore and aims to enhance the bank’s customer offerings.
Key Details of the Interest Rate Adjustment
Ravindra Singh Negi, Chief General Manager (Retail Liabilities and NRI Business) at Bank of Baroda, expressed, “The rise in retail deposits underscores the bank’s dedication to providing enhanced facilities for its customers.
We anticipate that this move will not only attract a greater customer base but also contribute to an overall increase in the bank’s deposits, thereby improving the Net Interest Margin (NIM).”
Industry Trend: SBI Sets the Pace with Interest Rate Increases
In line with the industry trend, State Bank of India (SBI) recently presented a New Year gift to its customers by elevating interest rates on Fixed Deposits (FD).
SBI’s interest rate adjustments include an increase of up to 0.5% for select FD schemes.
SBI’s interest rate revisions cover various maturity periods, such as:
7 days to 45 days: Increased from 3% to 3.50%
46 days to 179 days: Raised from 4.50% to 4.75%
180 days to 210 days: Enhanced from 5.25% to 5.75%
211 days to less than one year: Raised from 5.75% to 6%
Three years to five years: Increased from 6.50% to 6.75%
It’s noteworthy that interest rates for other periods remain unchanged.
As the banking sector experiences these adjustments, customers may consider these opportunities for optimizing their investment strategies.
