Earlier in May,  SBI had cut the interest rates on fresh retail term deposits and on renewal of maturing deposits by up to 40 bps across tenors.

ICICI Bank on Tuesday said it has cut interest rate on saving deposits by 25 basis points (bps). The new rates will come into effect from Thursday, it said in a regulatory filing. The private sector lender has cut interest rate on all deposits of less than Rs 50 lakh to 3 per cent, a reduction of by 25 bps as against the existing 3.25 per cent.

Likewise, for deposits of Rs 50 lakh and above, the account holders will earn interest of 3.50 per cent, down from 3.75 per cent currently. Currently, banks have ample liquidity, and a comparatively less demand for loans due to the lockdown has created a asset-liability mismatch, which has put pressure on interest outgo against customers’ deposits.

Earlier in May, the country’s largest lender SBI had cut the interest rates on fresh retail term deposits and on renewal of maturing deposits by up to 40 bps across tenors. SBI Chairman Rajnish Kumar has already said that in the current scenario, interest rates are going to reduce. “The reduction in interest rates will be for both borrowers and depositors,” Kumar said recently.