Indian Bank slashes deposit rates

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indian bank slashes deposit rates
Mumbai, Dec 16: The deposit rates of State-run Indian Bank was slashed on Tuesday, Dec 16 with effect from Monday, Dec 15. For fixed deposits with a tenure of 46-90 days the deposit rate has been cut from 7.5 per cent to 6 per cent, Indian Bank said in a filing to the Bombay Stock Exchange.

The public sector lender said the interest rate on domestic term deposits of 91-120 day duration would be 7 per cent per annum (eight per cent earlier), while for two year to less than three years it would be 9.25 per cent (9.50 per cent)

The rate in case of three year deposits to less than five years has been revised to 9.25 per cent (9.50 per cent), and for five years and above interest has been pegged at nine per cent (9.50 per cent).

"Interest rates for all other slabs and other terms and conditions remain unchanged," the bank added.

Last week the state-owned lender, Union Bank, had slashed its benchmark prime lending rates (PLR) by 75 basis points to 12.5 per cent. The rate reduction comes after the Reserve Bank of India signalled a rate cut by reducing the short term lending and borrowing rates by 100 basis points each, prompting banks to cut rates.

Post the rate reduction by the central bank, the short-term lending rate (repo) now stands at 6.5 per cent and borrowing (reverse repo) rate at 5 per cent. Shares of Indian Bank were trading at Rs 121, up 1.34 per cent on the BSE.

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