IDBI Cuts Deposit Rates By 25-50 Bps

Mumbai, October 30: | Updated: Oct 31 2002, 05:30am hrs
Taking a cue from the mid-term review of the credit policy announced by the Reserve Bank of India (RBI) on Tuesday, Industrial Development Bank of India (IDBI) has slashed rates on its deposit schemes, Suvidha and Omnibus, by 25 to 50 basis points (bps) or 0.25 per cent to 0.5 per cent.

With this, IDBI has cut its deposit rates by 75 bps (0.75 per cent) on certain schemes, including the rates slashed by 25 bps last month.

The new rates to come into effect from November 15, have been focussed on attracting long-term deposits in line with our asset portfolio. That is why short-term deposit rates were slashed by 50 bps under Suvidha deposits, IDBI CMD PP Vora told presspersons on Wednesday.

To a pointed query, Mr Vora said: We cannot reduce the rates of schemes under Flexibonds-15, which is open for subscription till November 2. But a corresponding reduction in the rates offered on future issues is bound to be there.

The new rates offered for various maturities under Suvidha would be, 7.75 per cent (8.25 per cent now) for maturity from 12 to 23 months, eight per cent (8.5 per cent) for 24 to 35 months, 8.25 per cent (8.5 per cent) for maturities of 36 to 59 months, and 8.75 per cent (nine per cent) for 60 months and beyond.

Under the Omnibus (on tap) deposit scheme, the rates were slashed by 25 bps across the board.

The rates offered will be eight per cent for one year maturity, 8.25 per cent for three years, 8.75 per cent for five years, nine per cent for seven years, and 9.25 per cent for 10 years maturity.