Moneycontrol News
Shares of HDFC Bank were trading lower by over half a percent even as the lender announced a reduction in interest rates on savings bank accounts.
The bank on Thursday cut interest rates on most of its savings accounts to 3.5 percent from 4 percent.
Customers with savings bank account balance of Rs 50 lakh and above will continue to earn interest at 4 percent per annum, the lender said in a statement.
These shall be effective from August 19, 2017, it told the exchanges in a notification.
The bank’s action on the interest rate front follows suit of State Bank of India, which cut deposit rates on most of its savings accounts to a six-year low last month to boost net interest margins, prior to the interest rate cut by the Reserve Bank of India.
Lenders such as Yes Bank and Axis Bank among others have also cut interest rates on certain savings accounts.
(With inputs from Reuters)
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