Icici Bank has reduced its deposit interest rate of the savings account by 0.25 percent, according to the lender’s website.
The second largest private sector bank occurs days after the largest rival HDFC Bank announced a similar movement in the middle of a series of cuts in deposits of deposits after the RBI two decreases in consecutive rates.
Icici Bank depositors will obtain an interest of 2.75 percent in their savings bank balances of up to ₹ 50 Lakh, the same as HDFC Bank’s offer, according to the website.
For balances or more than ₹ 50 Lakh, the rate has decreased the leg by a similar quantum or 0.25 percent to 3.25 percent, axis per website.
Icici Bank’s reviewed rates are applicable as of Wednesday.
SBI, the largest lender in the country, currently offers an interest rate or 2.70 percent for savings bank accounts. Other lenders also have the term deposit fees in recent days.
The cuts of deposit rates by the lenders have arrived days after the RBI reduced its key rates per second consecutive time, carrying the cumulative decrease in the repo rate to 0.50 percent in the last four months.
The Central Bank has also made it clear that it is a faster transmission of its rate movements in the system, which will help achieve the objective or accelerate economic growth.
The accumulation of deposits has been a challenge for banks in the last quarters, which also witnessed deficit liquidity, and lenders have been informing pressure on the margins of net interest lately.
Posted on April 16, 2025