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Bank of India to cut some deposit rates from Sat
June 05, 2003 19:00 IST
State-run Bank of India said on Thursday it will lower some deposit rates by 25-50 basis points from June 7.
The bank did not give any reasons for the cut.
Bankers say reductions in deposit rates are needed to align them with lower bond yields which have fallen to record lows in a rally fuelled by easy money conditions and hopes of a cut in the Reserve Bank of India's repo rate, a benchmark for short-term interest rates.
Bank of India said in a statement it will now offer 4.75 per cent interest on deposits maturing between 46 to 90 days against five per cent earlier.
For deposits with maturities between one year and three years, the bank will pay five per cent, instead of 5.50 per cent.
In May, the bank had lowered rates on its short-term deposits maturing within 45 days, but left other rates unchanged.
Earlier this week, state-run Bank of Baroda lowered rates on some of its deposits by 25 basis points.
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