ICICI Bank Limited is an Indian multinational banking and financial services company. It has recently cut its interest rate. The rate was on savings bank account deposits and has been reduced by 25 basis points. It now officially stands at 3% for those customers who wish to deposit in a savings bank account. This new interest rate will be effective from tomorrow itself. ICICI Bank has issued a few statements in context to it. Interest rate on all deposits of less than 50 Lakh Indian Rupees has been cut to 3%. A reduction of 25 bps against the existing has led to 3.25%.
Similarly, those customers that deposit more than 50 Lakh Indian Rupees or the equivalent amount will earn interest of 3.50%. This is same to the reduction of 25 basis points from 3.75% leading to the new rate.
On the contrary the State Bank of India (SBI) too had reduced the interest rate. Their interest rate is reduced by 5 basis points leading to 2.7%. Flush with liquidity and a comparatively less demand for loans due to the lockdown, most lenders have resorted to lower deposit rates.
SBI Chairman Rajnish Kumar has said. “The reduction in interest rates will be for both borrowers and depositors.” For deposits maturing in seven days to 45 days, SBI is offering an interest rate of 2.90 per cent as against 3.30 per cent earlier. It revised rate for fixed deposits in 180 days to 210 days bracket to 4.40 per cent from 4.80 per cent earlier.
