Bandhan Bank slashes deposits rates up to 50 basis points

City-headquartered Bandhan Bank has reduced its deposit rates up to 50 basis points across tenures, after being experiencing high liquidity and relatively lower credit growth, a top bank official said on Friday.

The lender now offers 7.5 percent for one year deposits compared with 7.70 percent earlier while for the 5-10 years period, the rate was revised to 6.5 per cent from 7 percent. Savings account deposits rate up to Rs one lakh also revised downwards to 4 per cent from 4.25 percent.

The new rates are effective from March 31.

"The bank has the high liquidity but credit growth remains muted. We found earnings from our investments into financial instruments also are going sluggish with lower interest rate regime," Managing Director Chandra Shekhar Ghosh told IANS.

The bank has now over Rs 22,000 crore of deposits base since its inception in August 2015.

--IANS

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