Bank of India Cuts Savings Deposit Rate
The lender also reduced the interest rate on green deposits, and pointed out that a 999-day deposit will earn 6.70% now against 7% earlier.
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State-owned Bank of India cut on Monday its savings deposit rate by 25 basis points to 2.5%, in line with similar moves by peers.
The lender also reduced the interest rate on green deposits and pointed out that a 999-day deposit will earn 6.7% now against 7% earlier, according to a statement.
Towards the end of June, India's largest private sector lender, HDFC Bank Ltd. had lowered the interest rate offered on fixed deposits and savings accounts by 25 basis points. This is the second time the lender has cut rates in June.
The fixed deposit interest rate offered for deposits less than Rs 3 crore, applicable since June 25, stands at 5.75% for a one-year period, as per the lender's website. The rate is set at 6.25% for senior citizens.
The savings account interest has also been revised to 2.50%, according to the bank's website.
MCLR Cuts Post RBI Repo Rate Cut
A month after the Reserve Bank of India announced its second repo rate cut of 25 basis points to 6%, some banks had slashed their marginal cost of fund-based lending rates or MCLR.
The MCLR is a rate that is set by the banks based on the various costs that needs to be factored in while lending, such as cost of incremental funds, operating costs, loan loss provisions and profit margins.
Among lenders, Canara Bank has cut its MCLR across tenures by 10 bps. The state-owned bank's revised MCLR will be in the range of 8.2–9.2%
HDFC too cut its MCLR by 10 basis points in June across tenures according to bank's website showed.
The bank's MCLR now ranges between 8.90% and 9.10%, as per its website.
(With PTI Inputs)
