SBI cuts some deposit rates
The bank cuts deposit rates of Rs1 crore or more in two buckets by 25 basis points each
Mumbai: State Bank of India (SBI) on Tuesday said it will reduce interest rates on some deposits effective from Friday.
The bank has cut deposit rates of ₹ 1 crore or more in two buckets by 25 basis points each. One basis point is one-hundredth of a percentage point. The bank will pay 6.25% interest on deposits of ₹ 1 crore or more in the seven days to 60 days bucket, down from 6.50%, while deposits in the 61 days to less than one year bucket will yield 6.75%, down from 7%.
For retail deposits below ₹ 1 crore, the interest rate has been cut only in the seven days to 179 days bucket by 50 basis points. Depositors will earn 7% interest in this tenure down from 7.50% currently, SBI said.
SBI’s decision comes just a day after data released from the government showed that both consumer as well as wholesale prices dropped to multi-month lows in June, increasing expectations that interest rates may not rise further.
Consumer price inflation slowed to 7.31% in June, the slowest pace since January, while wholesale-price inflation slowed to 5.43% in June from 6.01% in May.
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