In past few weeks banks have reduced their term deposit rates on selected maturities. ICICI, HDFC, Axis bank are among the top banks to initiate the reduction. Following the same the highly networked bank of the country- SBI also reduced it rates and the Bank of Baroda and Bank of India also followed the same.
With the desire to bring down lending rates to be competitive in the loan market and keep margins from narrowing the bank are lowering the rates. Further the more the rates are expected to drop down. However, from the Private sector banks Yes Bank and IndusInd bank still maintain greater lending rates, they are not reducing down their rates. At present the Canara Bank is offering highest rate of interest on fixed deposits maturing between one and two years at 9.05%