Bank of Baroda Elevates Interest Rates on Retail Term Deposits

Bank of Baroda Elevates Interest Rates on Retail Term Deposits

VoM News Desk | December 29, 2023 | 09:40 AM IST | Breaking News | Follow on Google News

Bank of Baroda Elevates Interest Rates on Retail Term Deposits

Bank of Baroda Elevates Interest Rates on Retail Term Deposits

In response to evolving financial dynamics, Bank of Baroda, a prominent entity in India’s public sector banking, has announced an upsurge in interest rates on retail term deposits.

This strategic maneuver aims to attract a larger customer base for fixed deposits by adapting to the changing market conditions.

Rising Rates in Deposit Offerings
The increased rates span various deposit durations, with a rise between 25 to 125 basis points contingent on the deposit term. Short-term deposits see a moderate increase, while long-term deposits witness a more significant surge. This step aligns with the heightened competitive landscape in the banking sector, with entities like the State Bank of India (SBI) and Axis Bank also hiking interest rates on fixed deposits by up to 50 basis points across different periods.

Sectoral Implications
Bank of Baroda’s move to escalate interest rates is expected to influence deposit strategies among other banks in the industry. In an environment of fluctuating interest rates, banks compete for depositor patronage, and this rate elevation signals ongoing competition. In light of constrained liquidity in the system, banks are actively seeking funds from the money market.

Customer Opportunities
For individuals contemplating fixed deposits, the present scenario might be an opportune time to secure these elevated rates. The bank’s objective is not only to strengthen its deposit portfolio but also to augment liquidity. Effective from January 14, 2023, the revised rates apply to term deposits below Rs 2 crore. Additionally, the bank has increased its marginal cost of funds based lending rate (MCLR) by 10 basis points across all tenures, effective from January 7, 2023.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.