NEWS & ADVICE : CREDIT CARDS
CRR hike causes banks to trim deposit rates
By Ankit Sharma
Nov 2, 2007
Print    Email    RSS   

New Delhi: The recent hike in CRR by Reserve Bank of India (RBI), has put pressure on banks' margins. To minimize the impact of the RBI's step, banks have now started to reduce interest rates on various deposit schemes.

Union Bank of India, had reduced its deposit rates for various tenures from 25 to 100 basis points last week, and Bank of Baroda (BoB) has also reduced interest rates on NRE term deposits with immediate effect.

Centurion Bank of Punjab announced that from November 5, its deposits will carry a reduced interest rates. Deposits for one to less than two years will see a 50 basis point rate cut and will now be available at 8 percent from the earlier 8.50 percent. Deposits of 13 months 15 days will see a rate cut of 25 basis points and will now be available at 9 percent instead of 9.25 percent.

State Bank of India (SBI) has introduced a new time slab of 550 days in its deposits. It is offering an increased interest rate of 75 basis points from 8 percent earlier to 8.75 percent. Senior citizens will enjoy an additional 50 basis point interest benefit and can earn 9.25 percent interest on deposits of this term.


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
RBI Dy. Governor rejects the possibility...
Importance of reviewing your credit report
Are cash-back credit cards a real good deal?
Is the economy facing a debt trap?
A general guide to Auto Insurance


Good Morning, i forgot my FCMB Account Number and...
Radhey@09646870399 @Escoℛts In#Chandigarh...
Radhey@09646870399 @Escoℛt In#Chandigarh...

NEWS THIS WEEK
91st Founders day of the Karnataka Bank Feb 18, 2015
Banks on strike from 25th February Feb 16, 2015
SBT bank postponed the Open House meet Feb 13, 2015
Yes bank planning to line up for credit card portfolio Feb 12, 2015
Pocket banking – new app by ICICI bank Feb 11, 2015
News Archive