Indian Overseas Bank (IOB) revises savings account rates going to be in force from 10 April

After the RBI Governor Shaktikanta Das announced on Thursday, 6 April, that the repo rate will not change and would remain at 6.5 percent, Indian Overseas Bank (IOB) on Sunday announced that it has revised the rates for savings accounts. The new savings account interest rates, according to Indian Overseas Bank (IOB), will go into effect on April 10, 2023, and holders of savings accounts would get interest rates up to 2.90%.

IOB Savings Account Interest Rates

The bank promises a 2.75% interest rate on savings account balances up to Rs. 25 Lacs, a 2.75% interest rate on savings account balances between Rs. 25 Lacs and Rs. 1 Crore, and a 2.90% interest rate on savings account balances beyond Rs. 1 Crore, according to IOB. These interest rates are applicable to domestic, non-resident, NRO, and NRE savings account as well as those with or without a chequebook facility.

However, IOB recently altered its interest rates for fixed deposits under ₹2 crore. In addition to raising interest rates on a few tenors by up to 40 bps, Indian Overseas Bank (IOB) slashed interest rates on a number of tenors by up to 50 bps. The maximum interest rate on deposits that mature in 444 days has risen from 7% to 7.25%. Starting on April 10, 2023, the most recent FD rates for IOB will be in effect.

Interest on the IOB Tax Saver Deposit will carry over at a rate of 6.50%. Both the senior citizens' additional rate of 0.50% and the super senior citizens’ additional rate of 0.75% continue to be in effect.

The bank's profit for the quarter ended December 31, 2022, was Rs. 555 crore, and its net non-performing assets (NPAs) were at 2.43%, both of which were within the norms set by the RBI. The GNPA decreased by Rs. 393.14 Crore during the quarter, while the GNPA ratios increased to 8.19% from 8.53% in September 2022. (QoQ). As compared to September 2022's PCR of 90.94%, the provision coverage ratio for Q3FY23 was 91.34%.