SU lenders Central Bank of India and Dena Bank on Monday announced cutting interest rates on savings accounts by 50 basis points for deposits up to Rs 50 lakh. Central Bank of India reduced its saving account interest rate by 50 basis point or 0.50 percentage point to 3.5 per cent for deposits up to Rs 50 lakh. Dena Bank cut the rate by similar margin to 3.5 per cent for deposits up to Rs 25 lakh.
In a filing to the BSE, Central Bank of India said that it will now pay 3.50 per cent interest to customers having savings deposits of up to Rs 50 lakh.
While those having balance over Rs 50 lakh will continue to enjoy the 4 per cent interest rate on their savings, the bank said. The new rates comes to effect from tomorrow, Central Bank of India said.
Dena Bank in a statement said that it has cut the interest rate on savings account deposits up to Rs 25 lakh by 0.5 percentage point to 3.50 per cent.
“Dena Bank has reduced the interest rate on savings bank account for balance up to Rs 25 lakh to 3.50 per cent per annum from the existing rate of 4 per cent per annum,” Dena Bank said in a statement.
For deposits above Rs 25 lakh, the interest rate will remain unchanged at 4 per cent per annum, it said. A number of private and public sector banks, including market leader SBI, have reduced their saving account interest rate in recent time.
State Bank of India (SBI) had cut interest rate on savings deposits on July 31 by 0.5 per cent to 3.5 per cent for deposits up to Rs 1 crore, the lowest rate being offered in six years.
HDFC Bank, Bank of Baroda, Punjab National Bank, Axis Bank, Yes Bank and Karnataka Bank are among the over a dozen lender who have so far announced a cut in their interest rates on savings accounts.
Dena Bank stock ended 1.44 per cent down at Rs 30.90 while Central Bank of India shares were down 0.87 per cent at Rs 73.65 at close.