Bank of India decided to reduce interest rate on savings account deposits on last Monday. Already, a couple of private and public sector banks in India had slashed interest rates on savings account recently.
State Bank of India, the largest public sector lender India, had first come up with the plan of reducing interest rates on savings deposits on July 31, 2017. The bank slashed interest rate to 3.5% for savings account with deposits up to Rs.1 crore. However, deposits over Rs.1 crore would continue to earn 4% interest. Similarly, Axis Bank also slashed interest rates on savings bank account to 3.5% as opposed to 4% that was offered previously.
Commenting on this move by BOI, R S Sankaranarayanan, the executive director of BOI, said, “A cut on both the SB rate and interest on deposits are on the cards. Savings Bank account rate cut may not happen immediately but it is under consideration.”
The bank currently focuses on improving its business with its existing customers based, and also aims to get more customers in the future. Bank of India expects to earn Rs.88 crore profit in Q1 of the current financial year.
Along with reduced interest rates on savings account, Bank of India would also focus on business on retail, SME, rural and housing sector, and controlling and recovering slippages.
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