IDBI Bank cuts interest rates on FD by 15 bps

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Published: July 20, 2019 1:32:34 AM

Analysts at Kotak Institutional Equities observed that the system-wide average deposit rate is similar to the deposit rates being offered by most banks for their one to two year tenure deposits and is slightly lower than the ones by small finance banks (SFBs).

Fixed deposit rates in the bank range between 3.5% and 7.10% for deposits with a tenure ranging between seven days and 10 years.

IDBI Bank has reduced interest rates on fixed deposits (FD) with effect from July 19 by 15 basis points (bps) for its long-term deposits and between 25 bps and 50 bps for short-term deposits, according to the bank’s website.

FD interest rates for the one-to-two- and two-to-three-year tenure for deposits of less than `2 crore was cut down by 15 bps to 7.05% and 6.9%, respectively. Fixed deposit rates in the bank range between 3.5% and 7.10% for deposits with a tenure ranging between seven days and 10 years.

Earlier last month, top banks such as ICICI bank and HDFC Bank had cut deposit rates by 10-25 bps on select maturities. SBI in May had cut deposit rates by 5-15 basis points for long-term deposits, while it increased deposit rates by 10 bps to 7% for deposits having tenure of one year to less than two years.

Analysts at Kotak Institutional Equities observed that the system-wide average deposit rate is similar to the deposit rates being offered by most banks for their one to two year tenure deposits and is slightly lower than the ones by small finance banks (SFBs). “Deposit rates have remained stable in recent times as banks have found it challenging to pass through rate cuts given their tight liquidity conditions,” said analysts at KIE.

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