Top banks and lenders cut interest rates on Fixed Deposits
The major lenders including ICICI and HDFC Bank have lowered Fixed Deposits rates by up to 0.25 per cent in view of surge in deposits following the demonetisation. ICICI Bank website showed that for fixed deposit between 390 days to 2 years,
New Delhi: The major lenders including ICICI and HDFC Bank have lowered Fixed Deposits rates by up to 0.25 per cent in view of surge in deposits following the demonetisation. ICICI Bank website showed that for fixed deposit between 390 days to 2 years, the banks has lowered the interest rate by 0.15 per cent effective Wednesday while HDFC Bank has reduced interest rate by 0.25 per cent across all tenures on bulk deposits ranging between Rs 1-5 crore effective Thursday.
This step has further indicated towards reduction in lending rate as well in the next few days.
After this revision, the one-year FD would attract an interest rate of 6.75 per cent as against the 7 per cent earlier and the fixed deposits between 3 years 1 day and 5 years, the rate has been lowered to 6.5 per cent from 6.75 per cent.
Other rate cuts:
State Bank of India
- State Bank of India (SBI) slashed the interest rate on its FDs on selected maturities by up to 0.15 per cent.
- Term deposit of 1 year to 455 days has been reduced by 0.15 per cent to 6.90 per cent from 7.05 per cent effective on Thursday.
- The proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits. SBI’s rate cut is an indicator that the deposit and lending rates are set to fall further in the banking industry.
Kotak Mahindra Bank
- Private-sector lender Kotak Mahindra has reduced the interest rate on one-year FDs by 25 basis points to 7 per cent, lower than 7.05 per cent offered by SBI on deposits of the same tenure. The new rate came into effect on Monday.
- Kotak has also reduced rates on two- and three-year deposits by 50 bps each to 6.75%
It may be mentioned that banks have collected cash deposit of over Rs. 4 lakh crore following the demonetisation decision announced by Prime Minister Narendra Modi.