Axis Bank cuts deposit rates by 50 bps

HDFC Bank also cut its base rate to 9.35%

Axis Bank, country's third largest private sector lender, today cut its deposit rates, generally considered a precursor for a lending rate cut, by up to 0.50% across maturities.

"We have cut our deposit rates by 0.20-0.50% across tenors. The revision will be effective tomorrow," a senior official from the bank told PTI.

The cut has been sharpest in the short maturity of three months to a year, where rates have come down by 0.25 to 0.50%, the official said.

For deposits of over one year but under two years, they have been cut by up to 0.20%, the official said, while the longer tenor ones of over two years but under 10 years have been cut by up to 0.30%.

The call on rate cuts was taken before its larger rival HDFC Bank cut its base rate by a steep 0.35%, and the bank does not have any announcement on lending rate cut at present, the official said.