IDBI Bank reduces term deposit rates by up to 50 basis points

IDBI Bank today announced that that it has reduced its term deposit rates for selective tenors.

Bindisha Sarang May 10, 2013 12:02:35 IST
IDBI Bank reduces term deposit rates by up to 50 basis points

IDBI Bank today announced that that it has reduced its term deposit rates for selective tenors.

The bank has reduced rates in two short-term buckets, of 91 days- 6 months and 6 months-269 days by 50 basis points (bps) (now 7.25 percent) and 15 bps (now 8.50 percent), respectively. Before this reduction the rates for these two short term buckets stood at 7.75 percent and 8.65 percent, respectively.

IDBI Bank reduces term deposit rates by up to 50 basis points

Reuters

IDBI Bank had decided to review their retail term deposit rates (i.e. deposits up less than Rs 1 crore) in two short-term maturity buckets as a considered response to the signals emanating from RBI's Monetary Policy for 2013-14, announced on May 3, 2013. Keep in mind that the revised interest rates would come into effect from May 13, 2013.

According to the press statement the bank said, "Further, it has been decided to rationalize the additional interest payable to Senior Citizens over the normal interest rates to a uniform 50 bps for all retail term deposits having maturity of six months up to 20 years, including for tax saving deposits. Accordingly, the offer rate on retail deposits less than six months will be identical for normal and senior citizens".

In March, State Bank of India (SBI), had announced a reduction in the premium on senior citizens fixed deposits from 50 basis points to 25 basis points. Punjab National Bank (PNB) had also followed suit late.

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