Axis Bank Savings Rate Cut to 2.75%: Bank Comparison
Why in the news
Axis Bank joined HDFC Bank in lowering savings payouts to protect margins amid easing policy rates and surplus liquidity.
Savings rates compared
| Bank | Up to ₹50 lakh | Above ₹50 lakh | Note |
|---|---|---|---|
| Axis | 2.75% | 3.25% (up to ₹2,000 crore) | MIBOR plus 70 bps beyond |
| HDFC | 2.75% | 3.25% | Cut on April 12 |
| ICICI | 3.00% | 3.50% | Yet to respond |
| SBI | 2.70% | 3.00% (above ₹10 crore) | Cautious since Oct 2022 |
Why it matters
- Term deposits near 7% already attract rate-sensitive savers, so deposit flight may be limited.
- HDFC’s savings share fell from 33% to 24%.
- Banks trade some CASA for margins.
- RBI cut 50 bps over two MPC meetings and infused ₹1.2 lakh crore via OMO in April.
Exam angle
- NIM and CASA terms; cut of 25 bps.