A week after the RBI cut its key policy rate by 25 bps, Government-owned IDBI Bank has reduced its retail deposit rates in the range of 15 to 55 bps across categories.
IDBI Bank has decided to revise its retail term deposit rates with effect from June 10 across all maturity buckets, the bank said in a statement.
Generally, a deposit rate reduction is a precursor to a cut in the base rate or minimum lending rate.
“The bank has reduced the interest rate in most of the short-term maturity buckets of 31 days to <1 year by 25 bps (except 6 month 1 day, where the interest rate is reduced by 55 bps). The interest rate in the medium and longer term maturity buckets have been reduced by 15 bps (except for 1 year to < 2 years, where the interest rate is reduced by 20 bps),” the statement added.
IDBI Bank had also cut its bulk deposit rates last week.
Last week, Punjab National Bank and private sector lender Axis Bank decided to slash their retail term deposit rate on various maturities by up to 0.25 per cent effective June 8 and 9, respectively.
Following the policy action by the RBI on June 2, several banks, including market leader State Bank of India, reduced their base rate to 9.70 per cent from 9.85 per cent effective June 8.
Allahabad Bank cut its base rate by 0.30 per cent to 9.95 per cent, while Dena Bank and Punjab & Sind Bank reduced their base rate to 10 per cent each.