Private sector lender ICICI Bank has cut interest rate on savings bank account deposits by 25 basis points (bps) to 3 per cent. The new rates will come into effect from tomorrow. In a statement, ICICI Bank said interest rate on all deposits of less than Rs 50 lakh has been cut to 3 per cent, a reduction of by 25 bps as against the existing 3.25 per cent.
Similarly, for deposits of Rs 50 lakh and above, bank account holders will earn interest of 3.50 per cent, down from 3.75 per cent currently. In the meantime, the State Bank of India (SBI) has also reduced its savings deposit interest rate by 5 basis points (bps) to 2.7 per cent. Flush with liquidity and a comparatively less demand for loans due to the lockdown, most lenders have resorted to lower deposit rates. SBI Chairman Rajnish Kumar has already said that in the current scenario, interest rates are going to reduce. ‘The reduction in interest rates will be for both borrowers and depositors,’ Kumar said recently.
SBI, on May 27, had slashed its retail term deposit rates by up to 40 bps across all tenors. For deposits maturing in seven days to 45 days, SBI is offering an interest rate of 2.90 per cent as against 3.30 per cent earlier. It revised rate for fixed deposits in 180 days to 210 days bracket to 4.40 per cent from 4.80 per cent earlier.
Interest rate for deposits maturing in 5 years to 10 years has been cut to 5.40 per cent from 5.70 per cent earlier. The bank has also cut interest rates for bulk deposits ( Rs 2 crore and above) by up to 50 basis points.