Emphasizing a preference for shorter-term durations, the increased interest rates will prove advantageous for depositors, concurrently safeguarding Net Interest Margins (NIMs)
Mumbai: Bank of Baroda, a prominent public sector bank in India, has announced an upward adjustment in interest rates for Domestic Retail Term Deposits, including NRO Term Deposits. The revision ranges from 10 basis points to 125 basis points across various maturity periods, starting from December 29, 2023. These revised rates apply to deposits below Rs 2 crore.
The enhanced rates primarily target shorter-term maturity periods, particularly those under 1 year. The decision to raise interest rates in these shorter durations is designed to benefit depositors with such preferences. Simultaneously, it aligns with the bank’s strategic goal of balancing and optimizing the overall deposit cost and safeguarding its Net Interest Margin (NIM). This move is consistent with the bank’s broader strategy to increase its market share in shorter-term retail term deposits.
Shri Ravindra Singh Negi, Chief General Manager – Retail Liabilities & NRI Business at Bank of Baroda, emphasized, “The choice to elevate retail term deposit rates underscores Bank of Baroda’s dedication to providing added value to our customers while strategically managing our deposit portfolio. We believe that this initiative will not only attract more customers seeking higher savings returns but also assist the bank in optimizing its deposit costs, thereby protecting our NIM.”
Both existing and new customers of Bank of Baroda can capitalize on these higher rates by opening Fixed Deposits (FDs) at any of the bank’s branches nationwide. Existing customers also have the option to open an online FD through the bank’s Mobile app (bob World) or Net Banking (bob World Internet).
Also read : Bank of Baroda Raises Rs. 2,500 Cr Through Basel III Compliant Tier II Bonds
