After Axis Bank , state-owned Bank of Baroda has also reduced the interest rate for deposits below Rs 1 crore by 0.1 percentage points (or 10 bps) for a select maturity bracket.
"The bank has decided to revise rates of interest payable on Domestic Term Deposits & NRO Deposits of below Rs 1 crore, applicable to fresh deposits and renewal, with effect from March 24, 2015. The applicable rate of Interest in the maturity range of 181 to 270 days has been reduced from existing 7.75 per cent to 7.65 per cent," the public sector lender said in a filing with the BSE.
For all other deposits, no change has been made, the bank said.
In a surprise move earlier this month, the Reserve Bank had cut the key repo rate by 0.25 per cent to 7.50 per cent. The central bank in January too this year, had cut the repo rate by a similar margin to 7.75 per cent.
Read more: More pressure on banks to cut interest rates
Repo is the rate at which the central bank lends to the commercial banks.
Following this, Axis Bank was the first lender to cut its deposit rates last week by 25 basis points in select maturities.
However, banks have so far have not passed on the benefit to their customers and have mostly stayed away from lowering lending rates.
Bankers say, the lending rate will be lowered only after deposit rates come down, which is likely by next quarter or so.
At day’s close, the Bank of Baroda scrip ended at Rs 169.75 per share, down by 1.82 per cent over the previous close on BSE.
Digital-friendly measures
Bank of Baroda has launched an initiative to provide passbook facility on mobile and facilitate online credit to PPF account.
“As part of new customer-centric IT initiatives, we've launched Baroda mPassbook on March 13, 2015, a mobile app on Android platform to view account and transactions related information on a mobile phone,” Bank of Baroda said in a statement.
Along with online credit to PPF account, a PPF account statement through Bank’s Internet Banking – Baroda Connect was also launched.
The government bank has also launched 24 by 7 e-lobby self service banking to facilitate all days and anytime service to its customers.