With this, deposits having a maturity of one year will now carry an interest rate of 9.6 per cent against 10.10 per cent earlier, the bank said in a press release issued in Mumbai on Saturday.

Similarly, deposits having a tenure of 15 months will attract an interest rate of 10 per cent as against 10.35 per cent earlier. Senior citizens will receive a 0.5 per cent more rate for deposits across all maturities, the bank said.

The rate cut came shortly after Reserve Bank injected around Rs 20,000 crore into the banking system through a 0.5 percentage point cut in CRR to 5 per cent and slashed its short term lending and borrowing rates by one percentage point each to 5.5 and 4, respectively.