The country's two largest private sector banks ICICI Bank and HDFC Bank on Wednesday revised interest rates on fixed deposits by up to 0.50 per cent each, a week after State Bank of India reduced term deposits rates.
ICICI Bank has reduced interest rates of retail fixed deposits by 0.5 per cent for tenures ranging from 91 days to less than 5 years, the bank said in a statement.
"ICICI Bank has also rationalised the interest rate on retail fixed deposits of tenure up to 45 days," it said.
Under the revised rates effective September 11, the bank, which earlier had a peak offering of 9.25 per cent, will now offer 8.75 per cent for a deposit under Rs 15 lakh in the 390-day to less-than-two-year period, according to the information available on its website.
Meanwhile, HDFC Bank has revised interest rate on fixed deposits by up to 0.50 per cent on select maturities.
For deposits of maturity between six months 17 days and nine months 15 days, the upward revision is 0.5 per cent to 7.75 per cent.
Term deposits for nine months 16 days would earn 0.25 per cent lower interest at 7.75 per cent.
The rate on nine months 17 days to 1 year fixed deposit would go up by 0.5 per cent to 7.75 per cent, as per the data posted on the bank's website.
Last week, State Bank of India (SBI) slashed interest rate on fixed deposits up to 1 per cent across various maturities.
SBI Chairman Pratip Chaudhuri had said its deposit rate cut of up to 1 per cent was aimed at protecting the margins as deposits have grown much faster than advances in recent months.
