PM Modi imposed a lockdown from 24 March to prevent the spread of coronavirus in India. After which the economy slowed down a bit. But now the Punjab National Bank on Wednesday reduced the interest rates on savings deposit accounts by 0.5 percent. The reduced interest rates will be effective from July 1. The bank tweeted that the new interest rate on deposits up to Rs 50 lakh will be three percent per annum. Right now it is 3.50 percent. Similarly, on deposits of Rs 50 lakh or more, the interest rate will be 3.25 percent. Right now it is 3.75 percent. Banks currently have sufficient cash, while demand remains weak due to the lockdown situation induced by the coronavirus epidemic.
On the other hand, State Bank of India (SBI) and ICICI Bank have also cut the interest on savings account deposits. SBI has cut the interest rate by five basis points and ICICI by 25 basis points. After this deduction, SBI's deposit interest rate is 2.70. The bank also cut interest rates in April. SBI had reduced the interest rate from 3.0 percent to 2.75 percent.
If we talk about ICICI Bank, the interest on deposits below 50 lakhs has been reduced from 3.25 percent to 3.0 percent. The interest rate on deposits of 50 lakhs or more has been reduced from 3.75 to 3.50 percent. SBI had cut the interest rates by 40 basis points for all term deposits last week.
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