Public sector lender Oriental Bank of Commerce may cut interest rates for deposits of one year by 50 basis points on Tuesday.
“We will take a call on around 50 basis points cut in deposit rates on Tuesday at our Assets and Liabilities Committee (Alco) meet,” Oriental Bank Executive Director S C Sinha said on Monday.
At present, the bank offers an interest rate of 8.25 per cent on one year deposits of up to Rs 1 crore and 7.50 per cent for deposits above Rs 1 crore.
The bank had earlier cut its prime lending rate by 50 basis points.
Meanwhile, the bank also expects a growth of 25 per cent in its deposits and advances year on year (in 2009-10), Sinha said at the inauguration of the bank’s representative office in Dubai.
OBC plans to open 100 branches in India in 2009-10 and has a business target of Rs 2,00,000 crore for the year.