Bandhan Bank cuts deposit rates with effect from March 31
KOLKATA: Bandhan Bank has revised its deposit rates downwards by up to 50 basis points, narrowing the interest rate differential with other banks like State Bank of India and HDFC Bank.
The Kolkata-based lender, which is one of the two latest entrants in the universal banking space along with IDFC Bank, now offers 7.50% for one year deposits compared with 7.80% earlier. The long term 10 year deposits now carries 6.5% rate compared with 7% earlier. The new rates are effective from March 31.
This is the second time that Bandhan cut deposit rates after demonetisation.
"Banks have no alternative but to cut deposit rates as they have lesser opportunity to deploy the fund," Bandhan Bank Managing Director Chandra Shekhar Ghosh told ET.
Banks are flush with funds as the government's move to ban 87% of currency notes has forced people to park their stack of cash in banks.
Bandhan Bank's highest deposit rate is 7.50% while HDFC Bank offers highest at 6.9% for one year one day to one year three days period. Axis Bank offers 7% as its highest rate for one year to less than two years.
The bank has built a base of Rs 22,000 crore of deposits since its inception in August 2015. Its credit growth has been nearly 30% with outstanding credit portfolio of Rs 23,000 crore.
The Kolkata-based lender, which is one of the two latest entrants in the universal banking space along with IDFC Bank, now offers 7.50% for one year deposits compared with 7.80% earlier. The long term 10 year deposits now carries 6.5% rate compared with 7% earlier. The new rates are effective from March 31.
This is the second time that Bandhan cut deposit rates after demonetisation.
"Banks have no alternative but to cut deposit rates as they have lesser opportunity to deploy the fund," Bandhan Bank Managing Director Chandra Shekhar Ghosh told ET.
Banks are flush with funds as the government's move to ban 87% of currency notes has forced people to park their stack of cash in banks.
Bandhan Bank's highest deposit rate is 7.50% while HDFC Bank offers highest at 6.9% for one year one day to one year three days period. Axis Bank offers 7% as its highest rate for one year to less than two years.
The bank has built a base of Rs 22,000 crore of deposits since its inception in August 2015. Its credit growth has been nearly 30% with outstanding credit portfolio of Rs 23,000 crore.
