Central Bank of India cuts deposit rates on various maturities

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

For deposits less than ₹ 1 crore, maturing in 7 to 14 days, rates have been reduced to 5% from 6.50%. Term deposits with less than ₹ 1 crore, maturing in one year to less than two years has been reduced to 9% from 9.05%. Fixed deposits upto ₹ 1 crore in the maturity bucket of three years to less than five years would now attract an interest rate of 8.75% as against 9.05% earlier.

For deposits between ₹ 1 crore and ₹ 10 crore and maturing in seven to 14 days, rates has been reduced to 5% from 6.25% earlier. Term deposits between ₹ 1 crore and ₹ 10 crore maturing in seven to 14 days would now earn an interest rate of 6.25% from 5%.

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

For bulk deposits above ₹ 10 crore and maturing in 31 to 45 days, the rates has been reduced to 6.50% from 8.25% earlier.

Last month 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 to 8.75%. It also later reduced short-term deposit rates by 1 percentage point for amount below ₹ 1 crore.

Earlier this month, Punjab National Bank had also realigned interest rates on fixed deposits of ₹ 1 crore to ₹ 10 crore by upto 2%. Interest on PNB’s term deposits of seven to 14 days were increased by 2% to 6%.