MUMBAI :
Private sector lender Axis Bank Ltd cut interest rate on savings account by 25 basis points with effect from Monday.
The interest on savings account for balance up to ₹50 lakh has been lowered to 3.5%. For balance above ₹50 lakh, the interest rate stands at 3.5%.
This move comes after RBI announce an off-cycle repo rate cut by 40 basis points to 4% last month.
Last month Kotak had lowered the interest rate on savings accounts by 25 basis points to 3.5%. Among banks, State Bank of India continues to have the lowest savings account interest rate at 2.75%.
Axis Bank had reported a surprise ₹1,388 crore loss for the fourth quarter, as it set aside funds to cover potential loan losses due to the coronavirus-driven downturn.
The bank's average savings deposit grew by 13% year on year to ₹1.60 lakh crore for fiscal year 2019-2020 compared to ₹1.4 lakh crore in the previous fiscal. Average current account deposits grew by 11% year on year to ₹74,300 crore.
The bank's current and savings account ratio of total deposits (CASA) stood at 39% in the March quarter compared to 41% in the previous year
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