30 Apr , 2021 By : Kanchan Joshi
MUMBAI : IDFC First Bank has cut interest rate on savings accounts from 6% to 4-5% for 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% for minimum account balance of Rs2 crore to Rs10 crore, 5% for balance up to Rs2 crore and 4.5% for Rs1 lakh to Rs10 lakh.
IDFC was one of the few private sector banks, besides RBL and Bandhan Bank, offering the highest savings account interest rates.
The private sector lender had cut interest rate on savings account from 7% to 6% in February. The bank has seen its current and savings account (CASA) ratio increase to 48.3% as on 31 December 2020 from 11.4% 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% by fiscal year 2024, and 50% thereafter.
According to the estimates give for fiscal year 2021, IDFC First Bank had reported that its loan book grew at 10.09%, much higher than the industry’s growth. Its CASA ratio also rose to 51.95% as of March from 31.87% a year ago. Deposits have also grown at 43.15% year-on-year for the lender.
The bank had raised Rs3,000 crore through a qualified institutional placement (QIP) earlier this month.
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