Oriental Bank cuts FD rates up to 1%

State-owned Oriental Bank of Commerce (OBC) slashed fixed deposit rates by up to 1 per cent on select maturities.

The announcement comes on the heels of RBI cutting key policy rate by 0.25 per cent earlier this month.

The fixed deposit rate for maturities ranging from 31-45 days has come down to 6 per cent from 7 per cent, OBC said in a statement.

At the same time, term deposit of 180-269 days will earn 0.5 per cent lower interest rate at 8 per cent from earlier rate of 8.50 per cent, while interest rate on 91-179 days has come down by 0.25 per cent at 7.75 per cent.

However, interest rate on 46-90 days deposit remains unchanged at 7 per cent.

The revised FD rates effective will apply to deposits below Rs 1 crore, it said.

The central bank lowered the short-term lending (repo) rate to 7.25 per cent from 7.50 per cent, lowest since May 2011 while retaining the cash reserve ratio for banks unchanged at 4 per cent.

Source: thehindubusinessline