New Delhi Public sector Punjab National Bank on Wednesday reduced interest rates on savings deposit accounts by 0.5 percent. The reduced interest rates will be effective from July 1. The bank tweeted that the new interest rate on deposits up to Rs 50 lakh will be three percent per annum. It is currently 3.50 percent. Similarly, on deposits of Rs 50 lakh or more, the interest rate will be 3.25 percent. It is currently 3.75 percent.
Currently, banks have sufficient cash, while demand remains weak due to the corona virus epidemic-induced lockdown situation.
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On the other hand, State Bank of India (SBI) and ICICI Bank have also cut the interest on savings account deposits. SBI has cut the interest rate by five basis points and ICICI by 25 basis points. After this deduction, SBI’s deposit interest rate is 2.70. The bank also cut interest rates in April. At that time, the SBI had reduced the interest rate from 3.0 percent to 2.75 percent.
Talking about ICICI Bank, the interest on deposits below 50 lakhs has been reduced from 3.25 percent to 3.0 percent. The interest rate on deposits of 50 lakh or more has been reduced from 3.75 to 3.50 percent. SBI last week cut interest rates by 40 basis points for all term deposits.
