State-owned UCO Bank has reduced interest rate on
fixed deposit rates by up to 100 basis points on select maturities in line with other lenders.
Term deposit with maturity between 46-60 days has been reduced by 100 basis points (or 1 per cent) from 6.5 per cent to 5.5 per cent effective April 11, according to sources.
Earlier this month, Central Bank of India, Oriental Bank of Commerce, Dhanalaxmi Bank also their slashed deposit rates.
Even Chennai-based public sector lender Indian Bank revised their fixed deposit rates effective April 12. It also discontinued its special deposit products of 111 days, 222 days, 333 days, 444 days and 555 days.
For fixed deposits between 61-90 days, Kolkata-based UCO Bank would now pay lesser interest of 6.25 per cent compared to 7 per cent earlier.
Besides, for deposits with a maturity of 91-180, the new rate is 50 basis points lower at 7 per cent from 7.5 per cent, the sources said.
Similarly, the bank has also reduced rate on 181-364 days fixed deposit from 8.5 per cent to 8 per cent.
Experts attribute softening of deposit rates to easing of liquidity in the system and expected slowdown in the credit offtake during the first quarter of the current fiscal.
Last month, RBI hiked its key short-term lending and borrowing rates by 25 basis points (0.25 per cent) each to tackle inflation.
The short-term lending (repo) rate now stands at 6.75 per cent and the borrowing (reverse repo) rate at 5.75 per cent.
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