ICICI, Axis Bank cut rates on bulk deposits

On its part, Axis Bank has reduced rates on bulk deposits with maturity of two years by 45 bps to 6.1 per cent and on all deposits of longer maturities by 30 bps to 6.25 per cent.

By: ENS Economic Bureau | Mumbai | Published:November 30, 2016 2:39 am

ICICI Bank on Tuesday made a 55-basis point (bps) cut in interest rates on deposits of more than Rs 1 crore with maturities of one year to 6 per cent.

On its part, Axis Bank has reduced rates on bulk deposits with maturity of two years by 45 bps to 6.1 per cent and on all deposits of longer maturities by 30 bps to 6.25 per cent.

The bank reduced rates on deposits between Rs 1 crore and Rs 5 crore. It now pays 6.25 per cent on deposits maturing between one year and less than two years, as against 7 per cent earlier, and 6 per cent on deposits of longer maturities, compared with 6.75 per cent earlier.

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On Friday, Axis Bank had effected a sharp 100-bps cut in interest rates on deposits of more than R5 crore with maturities of one, two and three years to 5.5 per cent.

The move came on the back of cuts made by State Bank of India (SBI) last week, which now pays 4.25 per cent on one-, two- and three-year deposits with a value of above Rs 1 crore.

HDFC Bank on Friday reduced rates on bulk deposits of Rs 5 crore and more on tenures above one year by 25 basis points (bps) to 6.5 per cent.

With bank deposits jumping after the government said on November 8 that high denomination currency notes would cease to be legal tender, lenders have been slashing interest rates on term deposits. Banks have received deposits worth Rs 8,11,033 crore between November 10 and November 27, according to RBI. FE