IDBI cuts rates on deposits, car loans

Private sector IDBI Bank has lowered interest rates on deposits by 25 basis points to 50 basis points, or one-fourth per cent, across different maturities effective from 12 August. The bank has at the same time announced a one percentage point reduction in lending rates for automobile loans.

The bank has not made any changes in rates for deposits up to six months and all changes are for duration beyond six months. In the majority of slabs, the reduction is 25 basis points, or quarter of a per cent, but in the case of a few slabs, the drop is higher at 50 basis points, or half a per cent.

The rate of interest for deposit of one year to two years will be 6.75 per cent against 7.25 per cent at present. The highest rate of 8 per cent is for deposits of seven to 10 years.

The bank said it has reviewed its lending rate on auto loans and brought it down by one percentage point. The revised fixed rate of interest for a three-year tenor would range from 10.50 per cent to 12 per cent and for five years between 10.75 per cent and 13 per cent.