Mumbai: A few banking institutions have now started slashing depository rates in order to relieve stress on their margins.

Centurion Bank of Punjab has cut depository rates on some maturities, and the new rates will come into effect from November 5.

The bank slashed interest rate on deposits for one-to-less-than two years, by 0.50 basis points, to 8% from 8.50%. The bank made 0.25% reduction on deposits for 13 months 15 days, to 9% from 9.25%.

Union Bank of India also slashed depository interest rates on different maturities, during last week, between 25 and 100 basis points.

Bank of Baroda (BoB) also brought down the interest rates on NRE term deposits with immediate effect. It has also slashed the interest rate on car loans by 100 basis points as a festival season gift to its customers. The new interest rate will be 11.5% that would be applicable on all fresh loans on floating option approved on or after November 1, 2007. BoB is also providing an extra concession of 25 bps in the existing Centenary Retail Loan Festival period.

India’s biggest lender, SBI has brought out a fresh time slab in its term deposits, of 550 days. For the said period, the rate has been augmented by 75 basis points to 8.75% from 8%. Previously, the interest rate on the period of one to less than two years was 8%. For senior citizens, the new rate is 9.25%.