ICICI Bank on Tuesday effected a 55-basis point (bps) cut in interest rates on deposits of more than R1 crore with maturities of one year to 6%.
On its part, Axis Bank has reduced rates on bulk deposits with maturity of two years by 45 bps to 6.1% and on all deposits of longer maturities by 30 bps to 6.25%. The bank reduced rates on deposits between R1 crore and R5 crore. It now pays 6.25% on deposits maturing between one year and less than two years, as against 7% earlier, and 6% on deposits of longer maturities, compared with 6.75% earlier.
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%.
The move came on the back of cuts made by State Bank of India (SBI) last week, which now pays 4.25% on one-, two- and three-year deposits with a value of above R1 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%.
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.