Bank of Baroda has announced reduction in the interest rates for its various deposit products by 0.25-0.75 percent. The revised rates will be applicable for all deposits with a maturity period above 181 days and will be effective 27 May onwards.

Relating the move to the existing economic conditions, the bank said "reduction was led by the conditions of ample liquidity, low-inflation and sluggish credit expansion in the banking industry."

In recent past, many banks, including banking major SBI have taken similar steps, in response to the indicatives from RBI and have reduced their deposit rates.