A month after RBI’s rate hike, banks start raising deposit rates as liquidity shrinks, Bank of India the latest to move
RBI moved higher in a monetary policy development.
· ET Stocks
Domestic banks are beginning to increase their deposit rates due to shrinking liquidity conditions in the market. Bank of India recently announced a rate hike on deposits for various maturities, including a special 500-day option. This decision reflects the growing cost of deposits in the banking system as demand for credit rises.
The analysis
Against that, the stock is +1.2% on the day at ₹134.40, and has returned -2.6% over three months. It sits 24% below its 52-week high. The banks sector has moved -6.0% over the same period, so Bank of India is running 3.4 points ahead of its peers.
For Bank of India, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.
Why it matters
- Rate decisions ripple straight into banks, NBFCs and every rate-sensitive sector — from real estate to autos.
- With RBI involved, this carries a regulatory dimension that can outlast the immediate market reaction.
Market context
- In focus: Bank of India (BANKINDIA), in Banks.
- Over three months: Bank of India -2.6% against Banks -6.0% (3.4 points ahead).
| Company | Price | Day | 1M | 3M | From 52-wk high | Volume vs 20-day | Market cap |
|---|---|---|---|---|---|---|---|
| Bank of IndiaBANKINDIA · Banks | ₹134.40 | +1.2% | +3.8% | -2.6% | -24.2% | 0.5× | — |
Banks
1M -2.4% · 3M -6.0%
Bank of India
Prices as of 2 Nov 2026, 16:10 IST. Sector moves are the average of the stocks we track in each sector.
In this story
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