Bank of Baroda (BoB) Hikes FD Rates By 50 Bps Effective From Today: Details Inside

Just three days after the Reserve Bank of India's Monetary Policy Committee (MPC) on Friday decided to maintain the repo rate steady at 6.50 per cent for the fourth consecutive time, the public sector lender Bank of Baroda (BoI) on Monday surprised fixed income investors by announcing a 50 basis point increase on its fixed deposits (FDs) of less than Rs 2 Cr.

Following the modification, the bank is now providing interest rates on terms ranging from 7 days to 10 years, with a range of 3% to 6.50%. BoB is now giving a maximum return of 7.25% for the general public and 7.75% for senior citizens on a deposit duration of 2 years and up to 3 years. As per the official website of the bank, the new FD rates are effective as of today i.e. 9th October 2023. BoB last revised its FD rates on 12 May 2023.

BoB FD Rates

The bank will continue to offer a 3% interest rate on fixed deposits held for 7 days to 14 days, but for fixed deposits held for 15 days to 45 days, the interest rate has risen by 50 basis points (bps) to 3.5%. BoB increased interest rates on FDs coming to mature in 46 days to 180 days by 50 basis points, from 4.5% to 5%, and on 181-day to 210-day term deposits by 25 basis points, from 5.25% to 5.50%. Deposits that mature between 211 days to 270 days will now pay 6% interest, up from 5.75% earlier by 25 basis points, while those maturing in 271 days & above and less than 1 year will now pay 6.25% interest, up from 5.75% earlier by 50 basis points.

The bank will continue to pay an interest rate of 6.75% on FDs maturing in the next year to up to two years, while BoB has increased the interest rate on FDs maturing in the next two years and up to three years by 20 basis points, from 7.05% to 7.25%. BoB will continue to offer a deposit interest rate of 6.50% for terms of 3 years and up to 10 years, while the interest rate for terms of 399 days (under the Baroda Tiranga Plus Deposit Scheme) has been reduced by 10 basis points from 7.25% to 7.15%.

The bank recently disclosed to stock exchanges that its overall business reached Rs 22 lakh crore as of September 30, 2023, which is a rise of 15.88 per cent from the same period last year. As of September FY24, the bank's total advances climbed 17.43% YoY and 3.51% QoQ to Rs 10.25 lakh crore, while its deposits rose 14.63% YoY and 4.15% QoQ to Rs 12.49 lakh crore.

Domestic current account and savings account (CASA) deposits also grew, rising by 4.43% over the course of the same quarter of the previous year and 1.12% over the course of the previous quarter to reach Rs 4.24 lakh crore. Domestic advances performed well, increasing by 2.87% QoQ and by an astonishing 16.64% YoY to reach Rs 8.13 lakh crore.