The IDFC First Bank has decided to lower the interest rates on savings account to up to 4 percent. The new rates will come into effect from May 1, 2021.
The private lender was earlier offering a savings interest rate of 7 percent, which was cut to 6 percent in February this year. The bank has now decided to slash it further.
On saving account balance ranging from Rs 1 lakh to Rs 10 lakh, the bank is offering an interest rate of 4.5 percent.
An interest of 5 percent is being offered on minimum account balance up to Rs 2 crore, and 4 percent on balance ranging from Rs 2 crore to Rs 10 crore.
Notably, IDFC First Bank, along with RBL and Bandhan Bank, was known for offering the highest saving account interest rates among the Indian lenders.
The bank has seen a remarkable growth in its current and savings account (CASA) ratio, which increased from 11.4 percent on March 31, 2019 to 48.3 percent as on December 31, 2020.
The lender had, earlier in April, raised an amount of Rs 3,000 crore through a qualified institutional placement (QIP).
Estimates for the fiscal year 2021 show that IDFC First Bank's loan book grew at 10.09 percent, higher than the average industry growth. The CASA ratio is also estimated to have surged to to 51.95 percent as of March this year, higher than 31.87 percent in the same month a year ago. The bank also registered a 43.15 percent year-on-year growth in deposits.
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