ICICI Bank, a major private sector bank, has shocked its customers. ICICI Bank has slashed interest rates on savings accounts

New Delhi: ICICI Bank, a major private sector bank, has shocked its customers. ICICI Bank has slashed interest rates on savings accounts by 0.25 per cent. The new rates are effective from today.

ICICI Bank

ICICI Bank has reduced the interest rate on deposits of less than Rs 50 lakh from the current 3.25 per cent to 3 per cent. The interest rate on deposits of Rs 50 lakh and above has been reduced from 3.75 per cent to 3.50 per cent.

There is a lot of cash in the banks at the moment, the demand for loans is declining due to the lockdown. This created an imbalance of assets and liabilities in the banks and increased the pressure on the bank to pay interest on the deposits of the customers.

ICICI Bank State Bank of India, the country's largest lender, had earlier in May slashed interest rates by 40 basis points on new retail fixed deposit and mature savings renewals. At the same time, ICICI Bank has extended the exemption period till August 31 by giving relief to customers from EMI.

Customers now have three months to pay their term loan EMI and credit card bills. It may be recalled that the Reserve Bank of India (RBI) last month extended the waiver period for three more months.