Private lender Kotak Mahindra Bank on Thursday (October 17) announced a 50 basis-point cut in its savings account interest rate for balances below ₹5 lakh, reducing the rate from 3.5% to 3%.
This bank previously offered two rate slabs: 3.5% for balances below ₹50 lakh and 4% for balances above ₹50 lakh. The interest rates for balances above ₹5 lakh, however, remain unchanged. Savings accounts make up approximately 28% of Kotak Mahindra Bank’s total deposits.
Earlier this month, MD and CEO Ashok Vaswani said the bank wants to be one of the top three banks in India over the next five years. With a market capitalisation of over ₹3.7 lakh crore, Kotak Bank currently ranks fourth after HDFC Bank, ICICI Bank, and Axis Bank.