BoB cuts deposit rates by 25-60 bps

Written by feBureau | Mumbai | Updated: Apr 6 2013, 07:10am hrs
Bank of Baroda (BoB) cut interest rates on term deposits by 25-60 basis points (bps) on most of the maturity periods, as the bank looks to bring down cost of funds.

"We have lowered deposit rates by 25 bps for deposits below R10 crore and by about 50-60 bps on high cost deposits of R10 crore plus, said P Srinivas, executive director of BoB.

There was a wide expectation that there will be an improvement in the liquidity scenario post March 31, 2013. In the new financial year (2013-14), bank borrowings from RBI have dropped sharply to about R28,800 crore on Friday against a high of R1.75 lakh crore on March 28, FY13.

Afterv March 19 monetary policy, banks had indicated that liquidity pressure could ease starting April 1, as they continue to expect loan demand to be modest. They had also said that from mid-April banks could look at revising deposit rates to manage their cost of funds, which has risen sharply.