Oriental Bank of Commerce hikes fixed deposit rates by up to 0.75 per cent-ET
NEW DELHI: State-owned Oriental Bank of Commerce (OBC) today raised fixed deposit rates by up to 0.75 per cent across select maturities on account of tight liquidity situation.
The bank raised interest rate on domestic term deposits maturing between 91-179 days to 8.50 per cent from 7.75 per cent up 0.75 per cent, OBC said in a statement.
For deposits maturing between 270 days to less than one year interest rate has been increased by 0.25 per cent to 8.50 per cent from existing 8.25 per cent, it said.
However, 180-269 days term deposit would earn 8.50 per cent from existing 8 per cent.
The new rates would be effective from tomorrow, it added. In order to check the depreciation of rupee, RBI in the last two week has taken a slew of steps to tighten liquidity.
As part of its continuing fight to check rupee fall, the Reserve Bank yesterday announced additional liquidity tightening measures to contain excessive speculation and volatility in the foreign exchange market.
RBI has reduced the liquidity adjustment facility (LAF) for each bank from 1 per cent of the total deposits to 0.5 per cent, thus limiting the access to borrowed funds from the central bank. The limit will come into force with immediate effect and continue till further notice, the RBI has said.
In another measure to suck out liquidity from the system, RBI has asked banks to maintain higher average CRR (cash reserve ratio) of 99 per cent of the requirement on daily basis as against earlier 70 per cent. CRR is portion of deposits that banks are required to keep with RBI.
The bank raised interest rate on domestic term deposits maturing between 91-179 days to 8.50 per cent from 7.75 per cent up 0.75 per cent, OBC said in a statement.
For deposits maturing between 270 days to less than one year interest rate has been increased by 0.25 per cent to 8.50 per cent from existing 8.25 per cent, it said.
However, 180-269 days term deposit would earn 8.50 per cent from existing 8 per cent.
The new rates would be effective from tomorrow, it added. In order to check the depreciation of rupee, RBI in the last two week has taken a slew of steps to tighten liquidity.
As part of its continuing fight to check rupee fall, the Reserve Bank yesterday announced additional liquidity tightening measures to contain excessive speculation and volatility in the foreign exchange market.
RBI has reduced the liquidity adjustment facility (LAF) for each bank from 1 per cent of the total deposits to 0.5 per cent, thus limiting the access to borrowed funds from the central bank. The limit will come into force with immediate effect and continue till further notice, the RBI has said.
In another measure to suck out liquidity from the system, RBI has asked banks to maintain higher average CRR (cash reserve ratio) of 99 per cent of the requirement on daily basis as against earlier 70 per cent. CRR is portion of deposits that banks are required to keep with RBI.
OBC puts on hold base rate cut--Business Line
NEW DELHI, JULY 19:
Oriental Bank of Commerce (OBC) has decided to put on hold its earlier decision to cut the base rate by 25 basis points to 10 per cent from July 22.
The implementation date for reduction in the base rate has been put on hold, OBC said in a filing with the stock exchanges.
The public sector lender had, on July 9, announced that it would reduce base rate by 25 basis points from 10.25 per cent to 10 per cent with effect from July 22.
While the bank did not give any reason to put on hold the announced cut in base rate, the recent measures by the Reserve Bank of India to arrest the slide in rupee may have prompted this move, say economy watchers.
Reversing its monetary easing stance, RBI had recently taken strong steps to tighten liquidity. The central bank adjusted the interest rate on marginal standing facility (MSF) to 10.25 per cent from 8.25 per cent earlier.
Punjab & Sind Bank raises term deposit rates
The bank will now offer 8.25% for the deposits of tenure 5 months- 9 months instead of 8%
Punjab & Sind Bank has raised its term deposit rates by 25 basis points.
The bank will now offer 8.25% for the deposits of tenure 5 months- 9 months instead of 8%. Similarly the deposits maturing between 1- 2 years will fetch a rate of interest of 9% instead of 8.75 earlier.
The bank will also be paying 9.25% on deposits of 500 days instead of 9% earlier, it said in a statement. Similarly rate of interest on NRE deposits maturing between 1-2 years has been increased to 9% from 8.75%.
Yesterday another public sector lender Oriental Bank of Commerce had hiked the deposit rates.
The bank will now offer 8.25% for the deposits of tenure 5 months- 9 months instead of 8%. Similarly the deposits maturing between 1- 2 years will fetch a rate of interest of 9% instead of 8.75 earlier.
The bank will also be paying 9.25% on deposits of 500 days instead of 9% earlier, it said in a statement. Similarly rate of interest on NRE deposits maturing between 1-2 years has been increased to 9% from 8.75%.
Yesterday another public sector lender Oriental Bank of Commerce had hiked the deposit rates.
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