Axis Bank has cut fixed deposit rates by up to 0.25 per cent across various maturities in the 18 to 36 months window.
Similarly, for deposits up to 18 months, the rates have been reduced by 0.15% to 8.50%.
The deposit rate cuts by Axis Bank, which generally
With this, the third largest private bank is one of the first major banks to slash its deposit interest rates after RBI's repo cut a fortnight back.
Earlier this month, Axis Bank's rival HDFC Bank reduced its deposit rate offering by 0.25% on bulk deposits between Rs 1 crore and Rs 5 crore.
Also read: SBT cuts base rate by 10 bps
Since January, RBI has cut key interest rates by 50 bps and has indicated a shift in its stance after getting a grip over inflation and comfort with Budget announcements.
Following the out of cycle 50 bps cuts of RBI , the repo rate at which the central bank lends to banks, stands at 7.75% at present.
With easing liquidity conditions and the low credit demand, Axis Bank was among the few which cut its base rate or the minimum rate of lending in October last year by 0.10%.
While banks claim the policy moves generally take time to get transmitted into actual lending rates, the RBI has been unhappy with the banks for not passing the benefits of the rate cuts to borrowers.
Banks, including the largest bank State Bank of India, claim deposit rates are yet to come off and may take place only next quarter or the first quarter of the next fiscal year starting April.