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Axis Bank has cut retail deposit rates by 15-25 basis points (bps) in select maturities. The bank has cut rates by 25 bps for deposits of 18 to 36 months and by 15 bps for deposits up to 18 months. The revised rate stands at 8.50 per cent across all categories in the 6 months to 10 years bucket. These rates are valid for deposits below Rs 1 crore.
On March 4, the Reserve Bank of India (RBI) cut the repo rate by 25 basis points to 7.50 per cent. It had cut the repo rate by 25 bps in January as well. With interest rates going down, it was expected that deposit rates offered by banks would go down as well.
There has been action on bulk deposit rates in the past few weeks. In early March,UCO Bank reduced the interest rate on select bulk deposits by 11-52 basis points. The Kolkata-based lender will now pay interest at the rate of 8.7 per cent on deposits above Rs 5 crore maturing in 350-375 days, instead of the earlier 8.81 per cent. For deposits of Rs 100 crore and above with maturity of 376 days to less than two years, the rate will be 8.25 per cent instead of 8.77 per cent.
Similarly, Oriental Bank of Commerce slashed fixed deposit rates across various maturities by up to 0.50 per cent after the January rate cut by RBI.
