ICICI, HDFC Bank slash interest rates on term deposits

Leading private sector banks ICICI Bank, HDFC Bank and Axis Bank slashed interest rates on retail term deposit following in the footsteps of India's largest lender State Bank of India (SBI).

ICICI Bank has cut interest rates by 0.5% in the 90 days to 5-year bracket. Now, it offers 8.75%, compared with 9.25% earlier.

ICICI Bank also rationalized interest rates on retail fixed deposits of tenure upto 45 days.

HDFC Bank slashed interest rates to 8.75% in the tenure of six months and 17 days to five years. This move is effective from today.

Axis Bank cut its deposit rates by 25 basis points to 8.75% from 9.00%. The move is effective since yesterday.

In a aim to boost profitability banks have reduced deposit rates to lower cost of funds by widening difference between lending and deposit rates.

Last week, State Bank of India reduced interest rates on deposits by 100 basis points across maturities.

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