As per the trend, bulk depositors always earned higher interest rate as compared to the retail depositors. "This may change if ample liquidity continues to pervade the market and credit growth remains low," said a senior banker.

The banks are cutting down their deposit rate to bring down the cost of funds. They have reduced their lending rate after the announcement of liquidity infusing measures by RBI and finance ministry's pressure. However the banks also want to maintain their core base of retail deposits and this is the reason they are not cutting rates on retail deposits.

In fact some banks are offering high deposit rate on some of their fixed deposit (FD) schemes in order to retain their customer base and also mop funds from the depositors.