Private sector banker ICICI Bank has eliminated interest rate on savings bank account deposits by 25 basis points (bps) to 3%. The new rates shall come into effect from tomorrow onwards. In a statement, ICICI Bank said interest rate on all deposits less than ₹50 lakh of amount has been eliminated to 3%, a reduction of by 25 bps as against the existing 3.25%.
Similar to this, for deposits of ₹50 lakh and above the bank account holders will earn an interest of 3.50%, down from 3.75% currently.
Followed by this, the State Bank of India (SBI) has also decided to reduce its savings deposit interest rate by 5 basis points (bps) to 2.7%. Flush with liquidity and a correspondingly less demand for loans due to the ongoing lockdown, most lenders have re-establish to lower deposit rate.
Chairman Rajnish Kumar of SBI has already announced that in the current situation, interest rates are going to reduce. “The reduction in interest rates will be for both borrowers and depositors,” Kumar informed recently. SBI, on May 27, had scored its retail term deposit rates by up to 40 bps across all tenors.