HDFC Bank, ICICI cut FD rates by up to 25 bps

NEW DELHI: Leading private sector lenders ICICI Bank and HDFC Bank have cut rates by up to 25 basis points on high value fixed deposits across select maturities. The move could be a precursor to lower lending rates.
ICICI Bank has revised downwards rates for deposits of over Rs 1 crore by 25bps effective Monday, sources said. Fixed deposit rate of 121-150 days' maturity has been revised downward to 8% from 8.25% earlier.
Term deposit rate of the country's largest private lender for 61-90 days on high value fixed deposits of over Rs 5 crore and above has also been lowered to 8% from 8.25%. Similarly, for term deposit of 91-120 days, the interest rate is 8%.
The second largest private sector lender, HDFC Bank, has also lowered its rates on fixed deposits of over Rs 5 crore and above effective from Sunday.
Earlier this month, Axis Bank had reduced fixed deposit rates by up to 25 bps across various maturities. Axis Bank was one of the first major lenders to slash its deposit offering after RBI's repo cut on March 4.
The third largest private sector lender has cut its deposit rate offerings by 25 bps across buckets in the 18 to 36 months window, an Axis Bank executive said.
Similarly, for deposits of up to 18 months, the rates have been decreased by 15 bps to 8.50%.
With easing liquidity conditions and the low credit offtake, Axis Bank was among the few to cut base rate, or the minimum rate of lending, in October last year by 10 bps.
The central bank had indicated a shift in its stance after getting a grip over inflation and delivered a surprising 25 bps cut in January, and followed it up with a similar move on March 4, indicating its comfort with the budget announcements.