State-owned Canara Bank today lowered the fixed deposit rates by up to 1 per cent on select maturities.
The bank has slashed the interest rate by 1 per cent on maturities of 61-90 days to 7.75 per cent from 8.75 per cent.
For maturities of 91-120 days, the new rate would be cut by 0.5 per cent to 8.50 per cent, while for 121-179 days, the fixed deposit rate has been reduced by 0.25 per cent to 8.75 per cent, Canara Bank said in a statement.
Besides, 1-2 years fixed deposit would now earn 9 per cent compared with 9.1 per cent earlier.
The Reserve Bank of India had raised the repo rate by 0.25 per cent in its monetary policy review on October 29 making the cost of fund expensive for banks.
Following the central bank’s move, some banks including Punjab National Bank and Canara Bank raised the interest rates in some maturity brackets by 25-50 basis points.
State Bank of India and HDFC Bank had raised their base rate or the minimum lending rate by 0.2 per cent to 10 per cent.