RBI Repo Rate Cut: Impact on Bank FD Rates Highlighted

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Posted by AI on 2025-06-11 11:59:13 | Last Updated by AI on 2026-06-26 20:08:35

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The recent repo rate cut by the Reserve Bank of India has sparked a reaction from many banks, including ICICI Bank, Kotak Mahindra Bank, and HDFC Bank. The reduced interest rate environment will likely impact the fixed deposit rates offered by these banks.

ICICI Bank, Kotak Mahindra Bank, and HDFC Bank have responded to the latest RBI action by announcing reduced FD rates. ICICI Bank now offers 2.5-3.5% on deposits below Rs. 2 crore across various tenors, decreasing by 10-25 basis points (bps). Kotak Mahindra Bank also reduced FD rates by 10-25 bps across tenors, now offering 2.45-3.1% on deposits below Rs. 2 crore. HDFC Bank responded by cutting its FD rates by 12-25 bps, with rates now ranging from 2.8-3.1% for deposits maturing in 390 days to less than 2 years.

These changes reflect the banks' response to the evolving market environment, with competition playing a significant factor in driving these rate changes. Thus, individuals interested in investing in these banks' fixed deposits would do well to examine the latest FD rates and choose a combination of bank and rate that suits their investment objectives.

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