Axis Bank cuts deposit rates by 0.50%

Mumbai: Axis Bank, country's third largest private sector lender, Monday cut its deposit rates, generally considered a precursor for a lending rate cut, by up to 0.50 percent across maturities.

"We have cut our deposit rates by 0.20-0.50 percent across tenors. The revision will be effective tomorrow," a senior official from the bank told PTI.

The cut has been sharpest in the short maturity of three months to a year, where rates have come down by 0.25 to 0.50 percent, the official said.

For deposits of over one year but under two years, they have been cut by up to 0.20 percent, the official said, while the longer tenor ones of over two years but under 10 years have been cut by up to 0.30 percent.

The call on rate cuts was taken before its larger rival HDFC Bank cut its base rate by a steep 0.35 percent, and the bank does not have any announcement on lending rate cut at present, the official said.