Mumbai: Private sector lender ICICI Bank on Friday announced to reduce interest rate on savings accounts by 50 basis points to 3.5 per cent on deposits below Rs 50 lakh.

The interest rate on savings bank accounts with deposits of Rs 50 lakh and above remains unchanged at 4 per cent, the bank said in a regulatory filing. The revised interest rate will be effective from August 19.

On July 31, market leader State Bank of India (SBI) slashed interest rate on savings account deposits by 50 basis points to 3.5 per cent on balance of Rs 1 crore and below.

Several other lenders including, HDFC Bank, Bank of Baroda, Punjab National Bank and Axis Bank have also revised their interest rate on savings bank accounts.