Oriental Bank raises fixed deposit rates by up to 0.50%

State-owned Oriental Bank of Commerce (OBC) raised fixed deposits rate on select maturities by up to 0.5 per cent.

Term deposit with maturity 91-179 days would earn 0.25 per cent higher interest rate at 8.75 per cent, OBC said in a statement.

With the revision, term deposit between 180 days to 1 year would earn 9 per cent against existing 8.50 per cent, it said.

The new rates would be effective from November 4, it added.

Also, State Bank of India (SBI) raised fixed deposit rate by 0.2 per cent on select maturity.

Term deposit between 180-210 days attracts interest rate of 7 per cent against earlier rate 6.80 per cent.

However, there is no change in the interest rates for other maturities in less than Rs 1 crore bracket.

Earlier this week, RBI raised short-term lending (repo) rate by 0.25 per cent to 7.75 per cent making cost of fund expensive for the banks.

At the same time, the RBI lowered marginal standing facility (MSF) rate by a similar margin to 8.75 per cent.

Accordingly, the bank rate is reduced to 8.75 per cent with immediate effect. Consequently, the reverse repo rate is adjusted upward to 6.75 per cent.

Source: thehindubusinessline