ICICI Bank cuts rates on special deposits again

ICICI Bank has cut interest rates on special deposit schemes by 25-50 basis points and also realigned rates in some segments, effective November 12. The interest rate on 390-day deposit will now stand at 8.50 per cent (9 per cent) and that on a 590-day deposit will be 8.75 per cent (9 per cent). This is the second time in less than a month that the bank has reduced interest rates on special deposits. The bank had earlier reduced interest rates by 50 basis points and consequently, the interest rates on the 390-day, 590-day and 890-day deposits came down to 9 per cent (9.5 per cent). The bank has also realigned interest rates for deposits of greater than 1 year up to three years at 8 per cent to meet its asset liability requirement, said Mr V. Vaidyanathan, Executive Director, ICICI Bank. Mr Vaidyanathan, however, said that the cost of funds would remain unchanged and that there will be no revision in lending rates. The bank has also discontinued the 890-day special deposit scheme. Earlier, Union Bank of India reduced deposit rates between 25 and 100 basis points and Centurion Bank of Punjab by 25-50 basis points on deposits of varying maturities.