 "PNB cuts domestic term deposit rates by up to 200 bps")
Punjab National Bank has cut the interest rate on single domestic term deposit of less than Rs 1 crore to 7.50% from 8.75% earlier for maturity period of 180 days to less than one year effective Monday, said the bank in a notice to the Bombay Stock Exchange.
Further, interest rates on single domestic term deposits of Rs 1 crore to Rs 10 crore has also been revised in the maturity buckets of 30 days to 45 days to 6.50% from 8.50% earlier, 46 days to 90 days to 7% from 8.50% earlier, 91 days to 179 days to 8% from 8.75% earlier and 180 days to less than 1 year to 8.25% from 8.75% earlier.
According to estimates of analysts, banks had cut deposit rates by 75-100 basis points in the last fiscal. But in the fourth quarter (January-March) of last fiscal, few banks had hiked their deposit rates in the range of 25-50 basis points in a bid to attract deposits.
The first quarter is also a time when liquidity in the system is quite comfortable thus making it an ideal time for cutting deposit rates.
Further, interest rates on single domestic term deposits of Rs 1 crore to Rs 10 crore has also been revised in the maturity buckets of 30 days to 45 days to 6.50% from 8.50% earlier, 46 days to 90 days to 7% from 8.50% earlier, 91 days to 179 days to 8% from 8.75% earlier and 180 days to less than 1 year to 8.25% from 8.75% earlier.
According to estimates of analysts, banks had cut deposit rates by 75-100 basis points in the last fiscal. But in the fourth quarter (January-March) of last fiscal, few banks had hiked their deposit rates in the range of 25-50 basis points in a bid to attract deposits.
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More banks are expected to cut deposit rates as in the first quarter of the fiscal, credit growth normally slows down due to which banks are in a position to cut deposit rates.
The first quarter is also a time when liquidity in the system is quite comfortable thus making it an ideal time for cutting deposit rates.