The Hindu : PNB, BoB cut deposit rates

Online edition of India's National Newspaper
Thursday, Jan 09, 2003

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PNB, BoB cut deposit rates

By Our Special Correspondent

NEW DELHI JAN. 8. At least two leading commercial banks today announced further cut in fixed deposit interest rates, bringing them down to almost international levels. Other banks are expected to follow suit soon.

According to an announcement by Punjab National Bank (PNB) effective January 10 the rate of interest on term deposits for one year to less than two years would be lowered to 5.75 per cent from the existing 6 per cent and even deposits for two years to less than three years would get 5.75 per cent interest against 6.25 per cent being offered now. For deposits with maturity of three years and above, the rate has been brought down from 6.5 per cent to 6 per cent.

On deposits for 15 days to 29 days and 30 days to 45 days, PNB will now offer 4.5 per cent interest against 4.75 per cent earlier. However, the rate of interest on other maturities, that is, from 46 days to 90 days, 91 days to 179 days and 180 days to less than a year, the interest rates remain unchanged at 5.25 per cent, 5.25 per cent and 5.5 per cent.

PNB would also continue with the facility of 0.5 per cent higher interest on all maturities for senior citizens.

The other announcement came from Bank of Baroda (BoB). The bank reduced the interest on deposits for one year and more to 5.5 per cent from 6 per cent being offered now. For deposits of 15 days to 45 days, the interest would be 4.5 per cent against 5.25 per cent now while it will be 5.25 per cent for deposits of 46 days to 90 days, 91 days to 180 days and 181 days to less than one year.

BoB would also continue with the additional interest of 0.5 per cent for senior citizens.

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