Here is another jewel in the crown of the rate cut. After the base rate cut by ICICI and AXIS Bank, several banks were in the same queue. United Bank of India announced a cut by 25 basis points in the deposit rates across different maturities on Friday. According to the bank’s statement, the new rates will be applicable from July 06, 2015.
For maturity period of 180-269 days, the customers will pay 7.25 per cent from 7.5 per cent interest rate and for one year deposit, the interest rates will be 7.75 per cent from 8 per cent earlier.
For deposits having maturity period of 1 year up to 5 years, the revised interest rate will be 7.5 per cent. It was 7.75 per cent earlier.
On June 2, RBI Governor Raghuram Rajan had boosted banks to reduce the lending rates in the Monetary Policy Statement. SBI was the first to cut its base rate. Kotak Mahindra Bank also signed a rate cut.
SBI had cut its base rate by 15 basis points to 9.7 per cent. HDFC Bank also got its foot in the door by slashing the rate to 9.70 per cent last week. Similarly, ICICI Bank slashed its rate by 5 basis points to 9.70 per cent on June 25. Following ICICI Bank, AXIS Bank also cut the base rate by 10 basis points to 9.85 per cent. Kotak Mahindra Bank also signed a rate cut.