Deposit-heavy banks to gain most from SBI's savings rate cut to 3.5%

Banks with high deposits also include PNB, HDFC Bank, ICICI Bank, Axis Bank, BoB and Canara Bank

Just when the Street was underestimating the power of deposits, especially savings deposits, the move by State Bank of India (SBI) to cut rates on Monday could reiterate its relevance. Seen as the cheapest source of funds for a bank, SBI introduced dual interest rates on saving account deposits. Savings deposits of less than Rs 1 crore will earn only 3.5 per cent interest while keeping the rate unchanged at four per cent for deposits of more than Rs 1 crore.

Analysts expect banks with a strong deposit franchise to benefit from SBI's rate cut as they too