The public sector bank, Oriental Bank of Commerce, has reduced its interest rates on select fixed deposits by about 0.5 percent.
The bank issued a statement that the interest rates will be brought down to 7 percent from the present 7.25 percent on deposits of 31 to 45 days maturity period. Rates on term deposits of 46 to 90 days maturity period will also be reduced by 0.5 percent. In addition to this, the revised rates on fixed deposits of amounts above Rs. 15 lakh to less than Rs. 1 crore will come into effect from September 3, 2012. Rates on other term deposits remain the same.
OBC had recently slashed its base rate to 10.4 percent. Base rate is the minimum rate below which banks are not allowed to lend money to borrowers.