For deposits less than Rs 1 crore, maturing in 7 to 14 days, rates have been reduced to 5 percent from 6.50 percent.

Term deposits with less than Rs 1 crore, maturing in one year to less than two years has been reduced to 9 percent from 9.05 percent.

Fixed deposits upto Rs 1 crore in the maturity bucket of three years to less than five years would now attract an interest rate of 8.75 percent as against 9.05 percent earlier.

For deposits between Rs 1 crore and Rs 10 crore and maturing in seven to 14 days, rates has been reduced to 5 per cent from 6.25 per cent earlier.

Term deposits between Rs 1 crore and Rs 10 crore maturing in seven to 14 days would now earn an interest rate of 6.25 percent from 5 percent.

The new rates are applicable with immediate effect, the bank said.

The bank also announced changes in bulk deposit rates which would be applicable from October 14.

For bulk deposits above Rs 10 crore and maturing in 31 to 45 days, the rates has been reduced to 6.50 percent from 8.25 percent earlier.

Last month country's largest lender State Bank of India had also cut interest rate on medium-term deposits (one year to less than three years maturity) by 25 basis points to 8.75 percent.

It also later reduced short-term deposit rates by 1 percentage point for amount below Rs 1 crore.

Earlier this month, Punjab National Bank had also realigned interest rates on fixed deposits of Rs 1 crore to Rs 10 crore by upto 2 percent.

Interest on PNB's term deposits of seven to 14 days were increased by 2 percent to 6 percent.

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