And the balance of up to 10 lakhs will now earn 3% per year. The deposit between ₹ 10 lakh and ₹ 25 lakh will be 3.5%.
Accounts between ₹ 25 lakh and ₹ 50 lakh will earn 4%, while people below ₹ 50 lakh and below ₹ 100 crore will earn 5%.
The bank will continue to apply interest on the aged balance in the slab. For the balance of above ₹ 100 crore, customers need to contact the bank directly, the lender has mentioned on its website.
CEO Prashant Kumar said that the decision was taken during the liability committee meeting held on 17 April.
According to the Moneycontrol report, he called it a “profitability-centric step” after the RBI cut.
Kumar said, “We deposit the loan to deposit the loan to ensure stability,” saying that the bank is targeting 12–15% debt hike in FY 26. To maintain a healthy credit-to-dipocyte (CD) ratio, deposits are expected to be slightly higher than debt hike.
The bank plans to bring the CD ratio from 86%to about 85%.
Yes, the bank also provides Mibor-Linked Savings Accounts for some customers. The lender said that the rates are subject to change at the bank’s discretion.
This step follows the same cuts by other major banks. ICICI Bank trimmed its savings account interest rate On 16 April, by 25 BPS, the return on low balance was brought up to 2.75%.
Axis Bank also amended its savings account rates on 15 April.
HDFC Bank was one of the first people to cut the savings rates after a reduction in the 25-BPS repo rate of RBI last week.
