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Oriental Bank of Commerce (OBC) hiked interest rates on certain domestic term deposits as part of its cost management strategy.
For term deposits of less than Rs 1 crore, deposit rates have been hiked under different maturity buckets of 31 days to 179 days.
In the case of deposits with tenure of 31 to 45 days, the deposit rate has been increased from 6 per cent to 9.25 per cent.
For 46 days to 90 days, the deposit rate has been revised to 9.5 per cent from 8.50 per cent earlier.
The deposit rate has been hiked to 9.75 per cent from 8.75 per cent earlier in the case of 91 days to 179 days.
"We are rewarding loyalty among retail depositors. This will not impact out net interest margins. This move will help reduce the level of bulk deposits", S.L.Bansal, Chairman & Managing Director, Oriental Bank of Commerce told BusinessLine.
He also pointed out that short term rates on certificates of deposits had spiked (close to 10 pe rcent) and the latest move will help lower reliance on such instruments and bring down the cost of funds for the bank..
Srivats.kr@thehindu.co.in
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