IDBI, Oriental Bank raise deposit rates

State-run lenders IDBI Bank and Oriental Bank of Commerce (OBC)  hiked deposit rates by up to 1.50 per cent in select maturities on Wednesday.

A hike in the deposit rate is generally seen as precursor to upping the lending rate.

IDBI Bank, which also modified its maturity offering, will now pay 8.50 per cent for a deposit of 46 days to 200 days, which is higher than the earlier rate of 7 per cent for the 46—90 days basket and 7.25 per cent for the 91 days to less than six months basket, it said in a statement. The bank also hiked its interest rate offering in two other baskets by 0.25 per cent.

Oriental Bank of Commerce hiked its offering by 0.25 per cent in the one-year to-less-than two-year maturity bucket, it said in a filing with the stock exchanges.

IDBI Bank’s interest rate revision is effective August 16, while the same for OBC is from August 12.

Through a series of measures aimed at reducing the speculation on the rupee, the Reserve Bank has tightened liquidity starting July 15. This has hardened short term rates.

Source: thehindubusinessline