Bank of Baroda cut savings rate to 3.25%

India’s second largest public sector lender, Bank of Baroda, has cut its savings deposit interest rates by 25 basis points (bps) to 3.25% per annum, which is the lowest among its peers. The rate has been revised on saving accounts with balance below Rs 50 lakh and are applicable with effect from July 20. The bank last week also cut its term deposit rates across tenures; for 1-year term deposit, interest rate was cut 25 bps to 6.45% per annum.

Kamal Mahajan, head of treasury & global markets at Bank of Baroda, said: “The fact that inflation has remained well within targeted lesvels, RBI has already cut repo rate by 75 bps with an accommodative stance and has made reasonable liquidity available to the system and consequently, the CD rates and G-Sec rates have also moved down by 100 bps. Growth targets of the Indian economy as well as of the world have also come down. All combined, make us believe that this is the most opportune time to cut deposit rates.”

Other big lenders like SBI, HDFC Bank, ICICI Bank, Axis Bank and PNB offer 3.50% per annum to saving account deposits of under Rs 50 lakh balance.

Bank Of Baroda