In a major development, ICICI Bank has cut the interest rates on saving deposits by 25 basis points (bps). The new rates will come into effect from Thursday, ICICI Bank said in a regulatory filing. Currently, banks have ample liquidity, and a comparatively less demand for loans due to the lockdown has created a asset-liability mismatch, which has put pressure on interest outgo against customers' deposits.

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ICICI bank savings deposits interest rates: Slab wise details

- LESS THAN RS 50 LAKHS: The private sector lender has cut interest rate on all deposits of less than Rs 50 lakh to 3 per cent, a reduction of by 25 bps as against the existing 3.25 per cent.

-Rs 50 LAKHS AND ABOVE: Likewise, for deposits of Rs 50 lakh and above, the account holders will earn interest of 3.50 per cent, down from 3.75 per cent currently.

On May 9, ICICI Bank reported a 26 per cent year-on-year rise in its standalone net profit for the fourth quarter of 2019-20. According to the bank, its net profit during the quarter under review rose to Rs 1,221 crore from Rs 969 crore reported for the corresponding period of the previous fiscal. "Excluding Covid-19 related provisions, the profit after tax would have been Rs 3,260 crore (US$ 431 million)," the statement said.

Similarly, the bank's net interest income (NII) during the fourth quarter rose to Rs 8,297 crore from Rs 7,620 crore earned during the corresponding quarter of the previous year. The bank made provisions (excluding Covid-19 related provisions and provision for tax) worth Rs 3,242 crore during the quarter under review, as compared with the Rs 2,725 crore provisioning in the same quarter of 2018-19.