Mumbai: Days after Reserve Bank of India (RBI) slashed repo rate by 25 basis points, ICICI Bank announced to cut its savings account deposit interest rate by 0.25 per cent. The second largest private sector bank’s announcement comes after, country’s largest private sector bank, HDFC Bank, announced similar spate of cuts in deposit schemes.
ICICI Bank website mentioned that its customers will get a 2.75 per cent interest rate on their savings bank balances of up to Rs 50 lakh. HDFC Bank is offering the same the same returns. Depositors having balances of more than Rs 50 lakh, the rate has been decreased by a similar quantum of 0.25 per cent to 3.25 per cent.
ICICI Bank’s revised rates are effective from April 16, 2025.
State Bank of India (SBI), the country’s largest bank, is offering an interest rate of 2.70 per cent for savings bank accounts. Several banks have reduced the term deposit rate offerings in the past few days after RBI Governor Sanjay Malhotra announced the repo rate cut.
The RBI has directed the banks of faster transmission of its rate moves in the system, which it believes will help in achieving the objective of accelerating economic growth.
RBI Repo Rate Cut announcement
While announcing the RBI Monetary Policy Committee meeting outcome, Malhotra said that the MPC unanimously voted to reduce the policy repo rate by 25 basis points to 6.00 per cent with immediate effect.
“Consequently, the standing deposit facility (SDF) rate under the liquidity adjustment facility (LAF) shall stand adjusted to 5.75 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 6.25 per cent. This decision is in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth,” the statement read.
The Monetary Policy Committee (MPC) was held from April 7 to 9, 2025 under the chairmanship of RBI Governor Sanjay Malhotra. The MPC members included Dr Nagesh Kumar, Saugata Bhattacharya, Prof. Ram Singh, Dr. Rajiv Ranjan, and M. Rajeshwar Rao.
Following the Reserve Bank of India’s (RBI) 25 basis point repo rate cut, major Indian banks, including ICICI Bank and HDFC Bank, have reduced their savings account interest rates. ICICI and HDFC are now offering 2.75% on balances up to ₹50 lakh, and 3.25% on higher balances. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
