A day after the Reserve Bank's policy announcement, country's third-largest private sector lender Axis Bank today announced a deposit rate cut of up to 0.20 per cent.
"We have cut the deposit rates between 0.10 per cent to 0.20 per cent across all tenors," a bank official told PTI.
The revision in deposit rates, which generally precedes a lending rate cut, is applicable June 9, the official said.
However, the bank has not taken a call on lending rate, the official said.
It had cut its base rate or the minimum rate of lending, by 0.20 per cent in April to 9.95 per cent after RBI's hard talk on bank holding on to higher rates.
After announcing 0.25 per cent reduction in its key rate yesterday, RBI Governor Raghuram Rajan had continued to sound dismayed with banks for a lack of enthusiasm in transmitting RBI's policy moves to lending rates and also warned them that they stand to lose market share to money market alternatives because of this.
He said banks have cut deposit rates by 1 percentage point in the recent months. Banks like SBI, which has been the most aggressive in cutting lending rates, have cumulatively cut rates by 0.30 per cent.
