Core Viewpoint - IDFC First Bank has revised its savings account interest rates, introducing new slabs for small and medium balance categories, effective January 9, 2025, while maintaining competitive rates in the industry [1][3]. Summary by Category Interest Rate Changes - The savings rate for balances below ₹1 lakh is now set at 3% [4]. - A new slab has been introduced where the savings account rate for deposits above ₹1 lakh to below ₹10 lakh is pegged at 5%, and for balances above ₹10 lakh to ₹10 crore at 6.5% [5]. - Previously, the savings account rate for balances above ₹5 lakh to up to ₹5 crore was 7%, and for those above ₹5 crore to up to ₹10 crore was 6.75% [5]. Comparison with Other Banks - Other mid-sized private sector lenders like IndusInd Bank, Federal Bank, and Yes Bank offer interest rates of 2.50% for savings account balances below ₹1 lakh, while Bandhan Bank offers 2.70% [7]. - RBL Bank provides a 3% savings account rate for deposits below ₹5 lakh [7]. - For balances above ₹1 lakh to up to ₹1 crore, rates among these lenders range between 2.75% and 5.35% [8]. Impact on Financial Metrics - The reduction in savings account rates is anticipated to enhance the net interest margin (NIM) of IDFC First Bank, which reported a 59 basis point drop in NIM to 5.59% in Q2 FY26 compared to the previous year [6].

One basis point is 0.01 percentage point.Replying to a question by reporters during the post-monetary policy press conference, Malhotra said deposit rates should reflect "When inflation is so low and going forward also it's going to be low..., then even though the nominal interest rates may seem to be low...real interest rates today are quite high. So, that's true not only for borrowers but also for savers. And so, we do expect that going forward, especially after this RBI data showed that the cumulative 1 ...