OBC raises fixed deposit rates by 3.5%

State-owned Oriental Bank of Commerce today raised rates on high value fixed deposits by up to 3.5 per cent on select maturities amidst tight liquidity conditions.

Deposit of Rs 15 lakh and Rs 1 crore for 31-45 days maturity period will earn 8.5 per cent interest as against 5 per cent earlier, the bank said in a statement.

At the same time, interest rate on 46-90 days fixed deposits have been raised by 3.25 per cent to 9 per cent while those on 91-179 days term deposits have been increased from 8 per cent to 9 per cent.

The new rates are effective from March 1, it added.

Besides, rates on select maturities of fixed deposits beyond Rs 1 crore have been revised upwards by 1 per cent.

Banks are facing tight liquidity condition and have to borrow more than Rs 1.5 lakh crore from RBI on daily basis.

Tight liquidity conditions have also led to rise in rates of certificate of deposits and commercial paper issued by the banks.

Source: Financial Express