The bank offers an interest rate of 6.4% on retail deposits below `2 crore for all tenors from 11 months 25 days up to 18 months.
Private lender Axis Bank on Wednesday cut its marginal cost of funds-based lending rate (MCLR) by five basis points (bps) across all tenors with effect from March 18. The one-year MCLR of the bank stands at 8.1%.
The MCLR for the overnight, one month, three month, six month, one year, two year, three year tenors stand at 7.75%, 7.75%, 7.95%, 8.05%, 8.1%, 8.2% and 8.25%, respectively. The bank offers an interest rate of 6.4% on retail deposits below `2 crore for all tenors from 11 months 25 days up to 18 months.
Several other lenders have revised their MCLR downwards following various measures taken by the Reserve Bank of India (RBI) to ensure better monetary transmission to lending rates. The central bank had announced long-term repo operations (LTRO) for a total amount of up to Rs 1 lakh crore at the policy repo rate.
As banks are able to borrow at a cheaper price and have surplus liquidity in the system, interest rates on deposits have been trending downwards.
On Tuesday, Kotak Mahindra Bank had also cut its MCLR by 5-10 basis points with its one-year MCLR coming at 8.25%. The one-year MCLR of HDFC Bank and ICICI Bank are both pegged at 8.15%. The country’s largest lender State Bank of India (SBI) has its one-year MCLR at 7.85%.