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The Country's top two private lending institutions - ICICI Bank and HDFC Bank have slashed interest rates on fixed deposits.
HDFC Bank has reduced interest rates by 50 basis points according to news reports, while ICICI Bank has cut interest rates by 25 per cent across tenures.
Banks have been complaining of sluggish credit growth even as deposits continue to be robust. This has also been confirmed by the Reserve Bank of India which failed to cut the CRR in its Credit Policy as liquidity in the system remained adequate.
Interest rates on deposits have fallen in the last few months.
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