Federal Bank cuts savings & deposit rates, check stock reaction 

Shares of Federal Bank were trading on a flat note in the afternoon session on Thursday even as the lender announced rate cut with effect from today. Federal Bank reduced both savings and deposit rates with effect from today. The savings rates have come down by 25 bps i.e. for balances up to Rs 50 lakh.

The revised rates are 2.75% from the earlier 3% and for balances up to Rs 50 crore, the revised rates are 5.25% On similar lines, the rates have been reduced for multiple buckets. For the deposit rates less than Rs 3 crore,  the tenures have been revised. For a period between 1 year and 443 days, the revised rates are 7%.

Federal Bank shares were trading 0.38% lower at Rs 194.25 in the afternoon session on Thursday. Market cap of the bank on Thursday stood at Rs 47,687 crore. The banking stock has a one-year beta of 0.8, indicating average volatility during the period. Total 0.76 lakh shares of the bank changed hands amounting to turnover of Rs 1.48 crore on BSE.

The rate cut by Federal Bank follows a 25 bps repo rate cut by RBI to 6 per cent with effect from April 9. The central bank cut the repo rate in its second consecutive policy allowing transmission of lower rates by lenders to their customers across the country.