Central Bank of India Cuts Deposit Rates on Various Maturities

Mumbai: Central Bank of India has announced a reduction in its deposit rates on various maturities in the range of 5 to 175 basis points here on Monday.

Rates for deposits of less than Rs 1 crore maturing in 7 to 14 days have been reduced to 5 per cent from 6.50 per cent. Rates for term deposits of less than Rs 1 crore maturing in one year to less than two years have been reduced to 9 per cent from 9.05 per cent.

Fixed deposits up to Rs 1 crore in the maturity bucket of three years to less than five years would now attract an interest rate of 8.75 per cent as against 9.05 per cent earlier.

For deposits between Rs 1 crore and Rs 10 crore, maturing in seven to 14 days, rates has been reduced to 5 per cent from 6.25 per cent earlier.

Term deposits between Rs 1 crore and Rs 10 crore maturing in seven to 14 days would now earn an interest rate of 6.25 per cent from 5 per cent.

The new rates are applicable with immediate effect, the state-run lender said. It also announced changes in bulk deposit rates which would be applicable from October 14.

For bulk deposits above Rs 10 crore and maturing in 31 to 45 days, the rates have been reduced to 6.50 per cent from 8.25 per cent earlier.

Last month, the country's largest lender State Bank of India had also cut interest rate on medium-term deposits (one year to less than three years maturity) by 25 basis points, or 0.25 per cent, to 8.75 per cent.

It also later reduced short-term deposit rates by 1 percentage point for amount below Rs 1 crore.

Earlier this month, Punjab National Bank had also realigned interest rates on fixed deposits of Rs 1 crore to Rs 10 crore by upto 2 per cent.

Interest on PNB's term deposits of seven to 14 days was increased by 2 per cent to 6 per cent.