Among scheduled commercial banks, Lakshmi Vilas Bank has taken the lead in slashing its interest rate on domestic term deposits by 10 to 25 bps. The new rates are with effect from December 10.
The bank has decided to retain the rate on deposits with a tenure of up to 180 days at the existing level.
For deposits with a tenure of 181 and 270 days, the bank has proposed to slash by 25 bps to 8.5 per cent. The rate, however, will continue to remain at 8.75 per cent for those with a time bucket of 271 and 364 days.
For the 1-2 year deposits, a 10 bps reduction is to be effected from the existing 9.15 per cent, while it would be a 25 bps cut for those with a tenure ranging between 2 and 10 years to 9 per cent.