Dena Bank cuts savings rate by 0.5 per cent

New Delhi: Public sector Dena Bank on Monday cut interest rate on savings account deposits up to Rs 25 lakh by 0.5 per cent to 3.50 per cent. Those having deposits over Rs 25 lakh in their savings bank accounts will continue to get the existing interest of 4 per cent.

"Dena Bank has reduced the interest rate on savings bank account for balance up to Rs 25 lakh to 3.50 per cent per annum from the existing rate of 4 per cent per annum," Dena Bank said in a statement.

For deposits above Rs 25 lakh, the interest rate will remain unchanged at 4 per cent per annum, it said. With this, Dena Bank has joined a host of peer banks after the industry leader SBI started paying less on certain savings deposits.

State Bank of India (SBI) had cut interest rate on savings deposits on July 31 by 0.5 per cent to 3.5 per cent for deposits up to Rs 1 crore, the lowest rate being offered in six years.

HDFC Bank, Bank of Baroda, Punjab National Bank and Axis Bank, Yes Bank and Karnataka Bank are among the banks which cut their interest rate on savings accounts.

Dena Bank stock traded 1.59 per cent down at Rs 30.85 on BSE.