Public sector lender, Bank of India raised interest rates on fixed deposits by as much as 100 bps on selective maturities.
Deposits having tenor of 1-2 years will now earn the depositor interest of 8.25% as against 7.5% earlier.
Interest rates have also been raised for deposits having maturity of 2-3 years to 8.25% as compared to 7.25%.
Other maturities will however not have any change in interest rates.
Interest rates have also been raised by many other banks like Punjab National Bank, Allahabad Bank, Syndicate Bank etc.
Recently ICICI Bank raised both deposit as well as lending rates. Deposit rates have been raised by 25 to 50 bps across different maturities by the bank.
The largest lender of the country, State Bank of India has also raised its deposit rates.
"Deposit rates could go up by 50 basis points or more," SBI Chairman O P Bhatt had said.
"If credit growth picks up, more deposits can be attracted into the banking system by better pricing which is beginning to happen...In the current situation, they (deposit rates) can only go up," he had said.