HDFC Bank and ICICI Bank have slashed their fixed deposit (FD) rates by 25 basis points (bps) respectively in select tenures, country’s two-largest private sector lenders notified on their websites on Tuesday. This move comes after the Reserve Bank of India (RBI) on Friday, slashed the repo rate by 50 bps, bringing the repo rate down to 5.5%.
After the revision, the interest rate for general citizens in ICICI Bank for fixed deposits below Rs 3 crore are in the range of 3%-6.6%, and for senior citizens, the interest rates are in the range of 3.50%-7.10%.
The highest rate of 6.60% per annum is on a tenure of two years, one day to five years for general customers and 7.10% for senior citizens. The five-year tax saver fixed deposit is offered at an interest rate of 6.60% per annum for general customers and 7.10% for senior citizens.
For HDFC Bank, the rates of fixed deposits less than Rs 3 crore were in the range of 2.75%-6.60% for general citizens while for senior citizens they were in the range of 3.25%-7.10%.
It also revised the interest rates for fixed deposits greater than or equal to Rs 3 crores to less than Rs 5 crore bracket, which are in effect from Tuesday. The interest rates for general citizens are in the range of 4%-6.30% and for senior citizens are in the range of 4.50%-6.80%.
Since February, the Monetary Policy Committee (MPC) of the RBI has cut the repo rate by 100 bps in the June review. The apex bank has also kept the liquidity in surplus in order to aid transmission of the rate cuts in the deposit rates. According to RBI lending and deposit rate data, the weighted average lending rate on fresh rupee loans and outstanding rupee loans declined by 6 bps and 17 bps respectively, during February–April.
While the weighted average domestic term deposit rates on fresh deposits declined by 27 bps, while on outstanding deposits declined by 1 basis point during the same period.