Mumbai: Bank of India (BoI) slashed interest rate on fixed deposits by 0.25 percent on select maturities.

Interest rate on fixed deposit for maturity between 2-3 years has been reduced by 0.25 per cent to 9 percent, while 1,111-days term deposit will attract 9.10 percent as against 9.30 percent, state-run BoI informed the BSE.

With the revision, BoI's interest rate on 3-10 years fixed deposit would come down to 9 percent from 9.25 percent.

The Mumbai-based bank had last revised the interest rate on fixed deposits on March 22 this year.

The new rates are effective from July 2, it said.

However, interest rates on other maturities remain unchanged.

State Bank of India on the contrary had raised interest rate on select fixed deposits by 0.25 percent last week.

SBI's term deposits of three years but less than five years earns an interest rate of 9 percent, up from 8.75 percent.

A hike in interest rate by SBI is surprising also because it followed a cut of 0.20 percent in base rate by private lender HDFC Bank.

Meanwhile, another public sector lender Union Bank of India also slashed interest rate on various categories of farm loans by up to 1.75 percent.

Union Bank will offer crop loans, investment credit and loans for allied activities up to 50,000 at base rate only.

The interest rate for lending to self help groups (SHGs) has also been reduced by 1.75 per cent, Union Bank of India said in a statement today.

The revised interest rates are effective from July 1. At present, the base rate of Union Bank of India is 10.50 per cent.