The unions urged bank’s management to raise interest on fixed deposits offered to senior citizens to 7.10 per cent for 1–3-year tenor and above 6.50 per cent for others.
At a time when banks are aggressively raising interest rates on term deposits due to widening gap between credit and deposit growth, the interest rate differential on the maximum rate by Bank of Maharashtra and other public sector lenders is about 75 basis points (bps).
As a result, the bank is losing deposits to other banks, the Pune-based public sector lender’s employee union has said in a letter to the management.
The bank is offering a peak rate of 6.30 per cent on term deposits of up to Rs 10 crore while the peak interest rate for deposits of up to Rs 2 crore is 6.15 per cent.
First Published: Jan 10 2023 | 8:04 PM IST