ICICI Bank slashes rates on special deposits

Close on the heels of State Bank of India, ICICI Bank, the country's second-largest lender, today cut interest rates on its special deposit schemes by 25 to 50 basis points.

The private sector bank has aligned interest rates for deposits over 1 year to 8 per cent. The interest rate on the 390-day deposits will now be pegged at 8.5 per cent and the rate on 590-day deposit schemes is 8.75 per cent.

The bank has also discontinued the 890-day special deposit scheme. The changes in interest rates are effective from November 12.

State Bank of India (SBI), the country's largest lender, has cut its peak interest rate offered on the 550-day deposit by 25 basis points to 8.75 per cent with effect from November 7.

A 50 basis points hike in the cash reserve ratio (CRR) to 7.5 per cent by the RBI in its mid-term review of the monetary policy acted as a trigger for the bank to reduce its deposit rate.