Public sector lender Dena Bank has slashed interest rates on deposits by up to 0.5 percentage point on select maturities from today.
“The bank revises interest rates on domestic term deposits with effect from November 21,” it said in a release.
For maturities of 180-270 days, interest has been cut by 50 basis points to 6.50 per cent. One basis points equals to 0.01 percentage point.
While for maturities in range of 271 days to less than two years, customers will get 0.25 per cent less interest at 7 per cent.
The lenders have been slashing rates on deposits due to the nation-wide rush to remit cash in banks after government’s move to ban old Rs 500 and Rs 1000 notes and exchange these within a limit or put it in bank accounts.
This has made banks liquidity surplus besides making them pay interest on this huge sum, which is bringing deposits rates down.
Lenders such as SBI, ICICI Bank, HDFC Bank, Punjab National Bank and Canara Bank have already cut deposit rates on select maturities by various margin.
The lowering in fixed deposit rates is expected to bring down lending rate as well in next few days.