Canara Bank Cuts Savings Rate On Deposits By 25 Basis Points
Pedestrians walk past a Canara Bank Ltd. bank branch in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Canara Bank Cuts Savings Rate On Deposits By 25 Basis Points

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Public sector lender Canara Bank on Monday said it will cut deposit rates by 0.25 percentage points with effect from Oct. 15.

The present interest rate on savings bank deposits of Canara Bank will be revised with effect from Oct. 15, 2019, the bank said in a regulatory filing.

For outstanding balances of less than Rs 50 lakh, depositors will earn 3.25 percent interest, while for outstanding balances of Rs 50 lakh and more, the interest rate will come down to 3.75 percent.

The bank currently offers an interest rate of 3.50 percent for deposits less than Rs 50 lakh and 4 percent for Rs 50 lakh and above deposits.

The move comes days after the country's largest lender State Bank of India announced to cut deposit rates on balance up to Rs 1 lakh to 3.25 percent from 3.50 percent with effect from Nov. 1.

SBI also slashed its retail term deposits and bulk term deposits rates by 10 basis points and 30 basis points, respectively, for one-year to less than two-years period effective Oct. 10.

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