Axis Bank Cuts Savings Account Interest Rate By 3%

Axis Bank Cuts Savings Account Interest Rate By 3%


Axis Bank Cuts Savings Account Interest Rate By 3%


Interest on a savings account has been reduced by 3.5% for balances of up to ₹ 50 lakh.

The move comes after the RBI announced an off-cycle repo rate after deducting 40 percentage points in the previous month.

Private sector lender Axis Bank Ltd, with effect from Monday, cut the interest rate on savings account by 25 basis points.

Interest on savings account has been reduced by 3.5% for balances of up to ₹ 50 lakh. , For the balance above 50 lakhs, the interest rate is 3.5%.

The move comes after the RBI announced an off-cycle repo rate after deducting 40 percentage points in the previous month.

Last month, Kotak reduced the interest rate on savings accounts by 25 basis points to 3.5%. Among banks, State Bank of India has the lowest savings rate of 2.75%.

Axis Bank had reported an astonishing ₹ 1,388 crore loss for the fourth quarter, as it had earmarked funds to cover potential debt losses due to a coronovirus-driven slowdown.

The average savings deposit of the bank for the financial year 2019-2020 increased by 13% to ₹ 1.60 lakh crore from ₹ 1.4 lakh crore in the previous financial year. Average current account deposits grew by 11% to ₹ 74,300 crore on year.

The bank's current and savings account ratio of total deposits (CASA) was 39% in the March quarter as compared to 41% in the previous year.

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