* With a greater focus on shorter term tenors, the higher interest rates will benefit depositors, while at the same time, protecting NIMs
Bank of Baroda (Bank), one of India’s leading public sector banks announced an upward revision in the interest rates on Domestic Retail Term Deposits, including NRO Term Deposits, from 10 basis points to up to 125 basis points on various maturity buckets with effect from December 29, 2023. These rates are applicable on deposits below Rs 2 crore.
The increase in rates are largely focused on shorter-term maturity buckets, specifically those less than 1 year. Increasing interest rates in shorter-term maturities will not only greatly benefit depositors who keep deposits for shorter maturities but will also contribute to the Bank's objective of balancing and optimising the overall cost of deposits and protecting its Net Interest Margin (NIM). This is also in line with the Bank’s strategy to increase its share of shorter-term retail term deposits.
Shri Ravindra Singh Negi, Chief General Manager - Retail Liabilities & NRI Business, Bank of Baroda said, “The decision to increase retail term deposit rates underscores Bank of Baroda's commitment to offering higher value to our customers, while strategically managing our deposit portfolio. We believe this step will not only attract more customers as they earn more on their savings, but will also help the Bank optimise its cost of deposits, thereby safeguarding our NIM.”
Existing and new customers of Bank of Baroda can take advantage of the higher rates and open a FD through any of the Bank’s branches across India. An online FD can also be opened by existing customers via the Bank’s Mobile app (bob World)/ Net Banking (bob World Internet).
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