Bank of Maharashtra raises rates on term deposits after union appeal

Senior citizens will be offered an additional rate of 0.5% per annum for all maturity slabs

State-owned Bank of Maharashtra has hiked interest rates on its special rupee term deposits from January 16.

The lender made the decision after the united forum of MahaBank Unions urged management to raise interest on fixed deposits. The forum said some branches were losing out on balances in their savings and fixed deposits, which are maturing, to other banks because the interest differential on the maximum rate offered by Bank of Maharashtra and some other lenders stood at 75 bps for both senior citizens and for the normal category.

Post the revision, for deposits less than Rs 2 crore and tenor or 200 days, the bank will offer an interest rate of 7 per cent. The same interest rate applies for deposits of above Rs 2 crore and up to Rs 10 crore for a tenor of 200 days.

For retail deposits (up to Rs 2 crore) with a tenor of 400 days, the lender will offer an interest rate of 6.75 per cent. That is an increase of 45 basis points from the rate offered last month. The same interest rate applies for deposits of above Rs 2 crore and up to Rs 10 crore.

The revised rates are applicable for fresh deposits only and renewal of existing deposits, the bank said in an exchange notification. Senior citizens will be offered an additional rate of 0.5 per cent per annum for all maturity slabs of 91 days and above only in case of retail term deposits.

Bank of Maharashtra reported a 139 per cent year-on-year (y-o-y) rise in net profit to Rs 775 crore in the third quarter of FY23, on the back of robust growth in net interest income and decline in provisions and contingencies.