ICICI Bank slashes savings account deposit interest rate by 0.25%

ICICI Bank has cut its savings account deposit interest rate by 0.25 per cent, according to the lender's website.

The second largest private sector bank's move comes days after larger rival HDFC Bank announced similar move amid a spate of cuts in deposit offerings following RBI's two back-to-back rate decreases.

ICICI Bank depositors will earn a 2.75 per cent interest on their savings bank balances of up to Rs 50 lakh, the same as HDFC Bank's offering, as per the website.

For balances of over Rs 50 lakh, the rate has been decreased by a similar quantum of 0.25 per cent to 3.25 per cent, as per the website.

 

ICICI Bank's revised rates are applicable from Wednesday.

SBI, the country's largest lender, at present offers an interest rate of 2.70 per cent for savings bank accounts. Other lenders have also cut the term deposit rate offerings in the past few days.

The deposit rate cuts by lenders have come days after the RBI reduced its key rates for the second consecutive time, taking the cumulative decrease in the repo rate to 0.50 per cent in the last four months.

The central bank has also made it clear that it wants a faster transmission of its rate moves in the system, which will help in achieving the objective of accelerating economic growth.

Deposit accretion has been a challenge for banks over the past few quarters, which also witnessed liquidity being in deficit, and lenders have been reporting a pressure on net interest margins lately.