Following the State Bank of India’s recent hike in deposit rates, Bank of Baroda has joined the trend by increasing interest rates on domestic retail term deposits, witnessing an uptick of up to 125 basis points across various maturity periods. The revised rates are scheduled to be effective from December 29, 2023, and will be applicable to domestic deposits below Rs two crore, encompassing non-resident Indian ordinary (NRO) accounts, as stated in BOB’s official announcement.
Bank of Baroda clarified that the surge in rates predominantly targets shorter-term maturity periods, specifically those lasting less than one year. This strategic move aims to benefit depositors who opt for shorter maturities while aligning with the bank’s objective of optimizing the overall cost of deposits and safeguarding its Net Interest Margin (NIM). The adjustment is also in line with the bank’s overarching strategy to increase its share of shorter-term retail term deposits.
Despite these developments, shares of Bank of Baroda were trading 0.88% lower at ₹230.90 as of the last available update.
