Mumbai: ICICI Bank on 7 August reduced interest rates on deposits of value less than Rs15 lakh by 25-50 basis points for select maturities upto two years, a day after the country’s largest lender SBI reduced its deposit rates.
The revised interest rate for tenors 181-365 days will be 6.25% per annum as against 6.50% at present, ICICI Bank said in a release.
Similarly, the revised interest rate for tenors 366 days-upto 2 years excluding special deposit schemes will be 6.25% as compared to 6.75%, it said.
The new rates would be effective from 9 August, it said adding the interest rates on special deposit schemes remained unchanged.
The revision comes barely a week after Reserve Bank hiked the amount of depositors’ money commercial banks need to park with the central bank by half a percentage point.
Responding to the measures announced by RBI many public sector lenders including Bank of India and Bank of Baroda reduced interest rates by 0.5% to 9% on their special one-year deposit schemes.
Recently, Chennai-based Indian Overseas Bank had cut the interest rates across the board on all fixed deposits having maturities up to 10 years. Few other banks like Kolkata-based UCO bank and Vijaya Bank are also looking at slashing deposit rates by 50-100 basis points.
Deposits on fixed deposits of tenure 1-3 years could be reduced by 1% within a month, UCO Bank chairman S K Goel had said.