New Delhi: From November 12, deposits of various tenures from ICICI Bank will be available at reduced rates. The 50 basis points hike in CRR hike by RBI, has prompted such a step by many leading banks and more banks are likely to follow suit.
Interest rates on special deposit schemes by ICICI Bank have been reduced by 25-50 basis points and the bank has also re-aligned the rates in some areas.
|Tenure ||Old Rate (%) ||New Rate(%) |
|390 days ||9 ||8.50 |
|590 days ||9 ||8.75 |
ICICI Bank had reduced rates on special deposits earlier also. The 390 day, 590 day and 890 day deposit rates were changed during this reduction. Now, in less than a months time the rates on these deposits are being downward revised again. The bank has also decided to discontinue the 890 day deposit scheme.
Deposits of tenures greater than 1 year and up to 3 years have witnessed a rate alignment. These deposits will now be available at an interest rate of 8 percent. This step has been taken by the ICICI Bank to meet its asset liability requirements.
Union Bank of India, Centurion Bank of India, Bank of Baroda and the largest public sector bank State Bank of India have also reduced their interest rates on deposits of various periods from 25 to 100 basis points. Though the change in CRR has not yet shown its effect on interest rates on various loans, but the signals are clearly visible in deposit segment.