OBC likely to cut deposit rates by 50 bps

Public sector lender Oriental Bank of Commerce may cut interest rates for deposits of one year by 50 basis points.

Public sector lender Oriental Bank of Commerce may cut interest rates for deposits of one year by 50 basis points on Tuesday.

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“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.