BoB to hike deposit rates by 0.25%

Bank of Baroda on Tuesday said it would increase deposit rates by 25 basis points with effect from either January 27, 2006 or February 1, but would not go for any change in the lending rates.

The bank's executive director Avinash Mahajan told PTI that the bank, in a meeting held on Monday, had taken a decision to increase the deposit rates by 25 basis points.

"The decision to increase the deposit rate coincided with the RBI move," he said. RBI, in its third quarter review of the monetary policy, increased the fixed reverse repo and repo rate by 0.25 per cent to 5.5 per cent and 6.5 per cent respectively. It also kept the CRR and bank rate unchanged at five per cent and six per cent respectively.

Mahajan said measures taken by RBI in the third quarter review of the monetary policy would have "marginal impact" on the interest rates at least in the short-term.