New Delhi: Contrary to expectations of a hike in interest rates, Public sector lender Bank of India (BoI) on Thursday slashed rates by up to 75 basis points on fixed deposits of Rs1 crore and above.
“The revised interest rates on Domestic Rupee Term Deposits of Rs1 crore and above will be applicable for various periods on fresh deposits and on renewal of maturing deposits wef 15.04.2010, other rates remaining the same,” the bank said in a statement.
For deposits of at least Rs1 crore for one or two year maturity, the bank cut the rate to 6% from 6.75%, while for those with a maturity period of 2-3 years, the rates have been lowered from 6.75% to 6.25%, it said.
With inflation nearing the double digit mark, analysts expect RBI to further tighten its monetary stance in its annual policy on 20 April that may lead to a hike in both lending and deposit rates.
The Reserve Bank has already raised the cash reserve ratio or the amount banks have to park with the apex bank in its January policy review besides hiking its short-term rates by 25 basis points.
The state-owned Union Bank of India also recently hiked deposit rates by up to 0.5% across various maturities.
Other banks are waiting for RBI policy to take a call on the issue.