Kotak Mahindra Bank Ltd. on Monday cut the interest rate on savings account deposits by a further 0.50 percentage points. The private sector lender had cut its savings account interest rates twice last month.
From Monday, daily balance of over Rs 1 lakh will earn 4 percent interest as against the 4.50 percent earlier, while those under that threshold will earn 3.50 percent. Revisions are applicable for deposits in residents accounts only, Kotak Mahindra Bank said.
It can be noted that deposit rates across the system are dipping due to repo rate cuts by Reserve Bank of India's Monetary Policy Committee and lack of credit growth at banks. State Bank of India offers an interest rate of as low as 2.75 percent on the savings bank deposits. Others like Yes Bank Ltd. have hinted at the possibility of lowering the rates in near future.
During a recent media call, Uday Kotak, managing director at Kotak Mahindra Bank, had counted deposit accretion as among the key focus areas for the bank amid the Covid-19 pandemic crisis.
Kotak Mahindra Bank was among banks—including Yes Bank, IndusInd Bank and DBS—to offer higher pricing on savings deposits that had peaked at 7 percent for the past many years.
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