Axis Bank cuts bulk deposit rates by 25 basis points

Country's third-largest private sector lender Axis Bank on Monday announced a rate cut of up to 0.25% on its bulk deposits across three different maturities.

The revision, which comes amid a trend of downward movement in interest rates in the system, is applicable only on bulk deposits of over Rs 5 crore, the bank said.

A bank spokesperson said the rate offering in deposits for over six-months but under nine months has been revised down by 0.25% to 7.50%, while the same for over one-year but under two-years has been cut 0.15% to 8%.

In its recently announced results, the bank had said bulk deposits account for 21% of its deposit base, saying the retail term and demand deposits are at 79%.

The interest rates in the system have been on a declining trend for the last few months, which have seen the RBI cut its key rates thrice by a cumulative 0.75%.

Bankers have been complaining of credit growth being low and carrying excess liquidity. 

Meanwhile, state-run Bank of Baroda has also reduced its bulk deposit rate above Rs 1 crore and with maturity of six months and above by 25 basis points.

The bulk deposits rate for amount below Rs 1 crore has not been changed.

The city-based bank has reduced rate on deposits between Rs 1-10 crore, maturing in one year, to 8% from 8.25%.

For deposits above Rs 10 crore and maturing in one year, the bank is now offering a rate of 7.75% as against 8 per cent earlier.