Last Updated:June 13, 2025, 14:30 IST
Earlier this month, RBI’s Monetary Policy Committee slashed its repo rate by 50 basis points, prompting major Indian banks to follow suit.
HDFC, ICICI and Canara Banks have reduced FD rates. (Representative Image)
The Reserve Bank of India announced a cut in its repo rate by 50 basis points, leading to major reductions in respective lending rates and other plans by Indian banks. Following the RBI’s 55th meeting of the Monetary Policy Committee, Governor Sanjay Malhotra reduced the key policy rate from 6.00 per cent to 5.50 per cent on June 6, in a bid to achieve the medium-term target for the consumer price index inflation.
In a swift response, many banks followed suit by reducing lending rates as well as those of fixed deposits (FDs). Private sector banks like HDFC, ICICI, IDFC First and Kotak Mahindra have announced reductions on fixed deposits (FD) by 10-35 basis points, while public sector banks like Canara Bank and Indian Bank have also done the same in line with the lenders’ lower benchmark interest rates.
Banks Reduce FD Rates
1. HDFC Bank
The largest private bank has reduced its rates by 25 basis points across tenures, bringing it down to 6.25 per cent for regular citizens and 6.75 per cent for senior citizens for one-year fixed deposits. The rates came into force on June 10.
2. ICICI Bank
ICICI Bank has also reduced the rate for one-year FDs by 25 basis points, offering 6.25 per cent to regular citizens and 6.75 per cent to senior citizens. The bank also made its steepest cut in the 18-month to two-year brackets, lowering the rate to 6.50 per cent.
3. Kotak Mahindra Bank
Kotak Mahindra has cut its one-year FD rates to 6.25 per cent to regular citizens, ranging between 25 and 30 basis points. For senior citizens, it offers 50 basis points higher.
4. Union Bank of India
Union Bank revised its interest rates on June 12, offering a rate of 6.6 per cent on one-year fixed deposits to regular citizens and 7.1 per cent to senior citizens.
5. Indian Bank
Indian Bank has reduced its fixed deposit rate above one year but less than two years, taking it to 6.60 per cent by 50 basis points.
Likewise, banks like Bank of Baroda, Punjab National Bank, UCO Bank and Bank of India have announced a reduction in their Repo Linked Lending
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
- Location :
Delhi, India, India
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