OBC raises fixed deposit rates by up to 0.5 per cent

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

Term deposit with maturity of 91-179 days would earn a 0.25 per cent higher interest rate at 8.75 per cent, the state-owned lender said in a statement on Friday.

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

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

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

Term deposit between 180-210 days attracts 7 per cent interest against 6.80 per cent earlier. However, there is no change in the interest rates for other maturities in less than Rs 1 crore bracket.

Earlier this week, the Reserve Bank of India (RBI) raised repo or short-term lending 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.

The RBI has left unchanged other rates such as the cash reserve ratio at 4 per cent and the mandatory holdings in government securities and other liquid assets as a solvency measure (SLR) at 23 per cent.