BoI cuts deposit rates by 0.25%, UBI reduces farm loan rate
New Delhi: Bank of India (BoI) on Thursday slashed interest rate on fixed deposits by 0.25 percent on select maturities while Union Bank of India (UBI) has announced reduction in rate for farm loans by up to 1.75 percent.
Bank of India's decision to cut interest rates on FDs incidentally comes four days after State Bank of India raised rates on select fixed deposits by 0.25 percent.
BoI informed the BSE that interest rate on fixed deposit for maturity between 2-3 years has been reduced by 0.25 percent to 9 percent, while 1,111-days term deposit will attract 9.10 percent as against 9.30 percent.
With the revision, BoI's interest rate on 3-10 years fixed deposit would come down to 9 from 9.25 percent.
The Mumbai-based bank had last revised the interest rate on fixed deposits on March 22 this year.
The new rates are effective from July 2, it said.
However, interest rates on other maturities remain unchanged.
Meanwhile, another public sector bank UBI also slashed interest rate on various categories of farm loans by up to 1.75 percent.
Union Bank will offer crop loans, investment credit and loans for allied activities up to Rs 50,000 at base rate only.
The interest rate for lending to self help groups (SHGs) has also been reduced by 1.75 percent, UBI said in a statement.
The revised interest rates are effective from July 1. At present, the base rate of UBI is 10.50 percent.
It is to be noted that a hike in interest rate by SBI is surprising also because it followed a cut of 0.20 percent in base rate by private lender HDFC Bank.
SBI's term deposits of three years but less than five years earns an interest rate of 9 percent, up from 8.75 percent.