The second-largest PSU Bank, Bank of Baroda, has lowered down its interest rate by 25 bps to 3.25% per annum. The rate has been the lowest among all its peers, the new rates come into effect from July 20 and remain applicable for accounts with deposits of less than Rs. 50 lakh.
Also, last week, the bank has cut down its 1-year deposit by 25bps to 6.45% per annum.
Kamal Mahajan, head of treasury & global markets at Bank of Baroda, said: "The fact that inflation has remained well within targeted levels, RBI has already cut repo rate by 75 bps with an accommodative stance and has made reasonable liquidity available to the system and consequently, the CD rates and G-Sec rates have also moved down by 100 bps. Growth targets of the Indian economy as well as of the world have also come down. All combined, make us believe that this is the most opportune time to cut deposit rates."