Canara Bank cuts fixed deposit rates by up to 1 pc

State-owned Canara Bank on Tuesday lowered fixed deposit rates by up to 1 per cent on select maturities.

The bank has slashed the interest rate by 1 per cent on maturities of 61-90 days to 7.75 per cent from 8.75 per cent earlier.

For maturities of 91-120 days, the new rate would be lower by 0.5 per cent to 8.50 per cent while for 121-179 days, the fixed deposit rate has been reduced by 0.25 per cent to 8.75 per cent, Canara Bank said in a statement.

Besides, 1-2 years fixed deposit would now earn 9 per cent as compared to 9.10 per cent earlier.

The Reserve Bank of India raised the repo rate by 0.25 per cent in its monetary policy review on October 29 making cost of fund expensive for banks.

Following central bank's move, some banks including Punjab National Bank (PNB) and Canara Bank raised interest rates in some maturity brackets by 25-50 basis points.

State Bank of India and HDFC Bank had raised their base rate, or the minimum lending rate, by 0.20 per cent to 10 per cent.