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IDFC First Bank has cut the interest rate on savings accounts from 6 per cent to 4-5 per cent for a minimum account balance above Rs1 lakh. The new rate will be effective from 1 May, the bank said on its website.
The private sector lender is offering an interest rate of 4 per cent for a minimum account balance of Rs2 crore to Rs 10 crore, 5 per cent for balance up to Rs 2 crore and 4.5 per cent for Rs 1 lakh to Rs 10 lakh.
IDFC was one of the few private sector banks, besides RBL and Bandhan Bank, offering the highest savings account interest rates.
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The private sector lender had cut interest rate on savings account from 7 per cent to 6 per cent in February. The bank has seen its current and savings account (CASA) ratio increase to 48.3 per cent as on 31 December 2020 from 11.4 per cent as on 31 March 2019. Since the merger with Capital First in 2018, IDFC First Bank has morphed itself into a retail lender from a legacy infrastructure financier. It had given a guidance of CASA ratio of 30 per cent by the fiscal year 2024, and 50 per cent thereafter.
According to the estimates give for fiscal year 2021, IDFC First Bank had reported that its loan book grew at 10.09 per cent, much higher than the industry’s growth. Its CASA ratio also rose to 51.95 per cent as of March from 31.87 per cent a year ago. Deposits have also grown at 43.15 per cent year-on-year for the lender. The bank had raised Rs 3,000 crore through a qualified institutional placement (QIP) earlier this month.
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