For the 91 to 179 days period the bank will now offer a rate of 8 per cent on domestic term deposits and the 180 days to one-year period deposits will now bear an interest of 9 per cent. Interest rates will progressively increase to 10.5 per cent and 11 per cent respectively for the one to two years and two to three year periods respectively. For the over three-year term deposits, the interest rate will now be 11.5 per cent.

The new rates have come into effect from January 4 this year. In addition, the bank is also implementing a policy of differential interest rates on domestic term deposits of higher denomination. For the maturity period of 46 to 90 days, a 0.25 per cent higher interest will be offeredto single deposits of Rs 15 lakh to Rs 1 crore and a 0.50 per cent higher interest rate per annum for single deposit above Rs 1 crore.

For the 91-days to one-year maturity period, single deposits between Rs 15 lakh to Rs 1 crore will be get a 0.50 per cent higher interest and single deposits of more than Rs 1 crore can avail of a 0.75 per cent higher interest.

For maturity periods of more than one year, single deposits of Rs 15 lakh to Rs 1 crore will be paid 0.25 per cent more and single deposits of more than Rs 1 crore would be able to avail of 0.50 per cent more, according to a release issued by the bank. This differential rate is in keeping with the new policy announced by the Reserve Bank of India during the busy season credit policy for the November-April period.

The bank has also re-engineered its computerisation programme and the exercise which is currently underway mainly covers mainframe migration, setting up a corporate local area network (LAN), establishing connectivity with zonal andregional offices and major branches, credit monitoring, management information system, the bank's training laboratory and the Y2K problem. The whole exercise is expected to be completed by the end of the current fiscal.

With around 50 computerised branches at present the bank hopes to accelerate the drive towards automation and cover 60 per cent of its total business through its computerised branches by March 1999.