Bank of India hikes rates on over 3-month deposits

Bank of India has hiked deposit rates on select maturity periods by 25-50 basis points, the bank said in a press release to the Bombay Stock Exchange.

According to the release, the bank has hiked interest rates on deposits having more than three months maturity period.

For deposits of up to Rs 15 lakh, having maturity of 91 days to 179 days, the rate has been hiked to 7 per cent (7.25 per cent). For deposits of 270 days to less than one year maturity, the revised rate is 8.25 per cent (8 per cent). For deposits of one year to less than two years, two years to less than three years, three years to less than five years and for five years and above, the revised rate is 9.25 per cent.

BoI is realigning its deposit rates to match those offered by its peers.

Banks are revising deposit rates upwards as they are facing liquidity crunch. This is underscored by the fact that banks collectively borrowed Rs 1,48,820 crore from the Reserve Bank of India under its liquidity adjustment facility on Wednesday.

On the assets-side, banks are likely to reduce the spreads on the base rate for some loan segments -- small and medium enterprises and auto -- to revive the investment appetite.