On certain maturities on fixed deposits, Canara Bank which is owned by stated has reduced the rates of fixed deposits by one percent.
In a statement issued by Canara Bank, they stated that for deposits which mature between 61-90 days, the interest rate has dropped from 8.75 percent to 7.75 percent. A drop of 1 percent for fixed deposits which mature between 91-120 days; it would be 8.50 percent, a drop of 0.5 percent. For those whose maturity is between 121-179 days, the new rates are now 8.75 percent, a drop by 0.25 percent. For those deposits whose maturity is between 1-2 years, the interest rate was 9.1 percent however now it would be 9 percent.
On October 29, the monetory policy had been reviewed by the Reserve Bank of India where the repo rate was increased by 0.25 percent, due to this; it funding cost for banks became expensive.