BackSBI cuts deposit rates in select tenures
Deposits more than Rs1 crore in the 61 days to less than one year tenure will yield 7% interest from Tuesday down from 7.75% earlier
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Mumbai: State Bank of India (SBI), the country’s largest lender has cut deposit rates in select tenures by 25 to 75 basis points (bps) effective from Tuesday, the bank said in a filing to the stock exchange.
One basis point is 0.01 percentage point.
Deposits more than Rs1 crore in the 61 days to less than one year tenure will yield 7% interest from Tuesday down from 7.75% earlier.
Deposits which are less than Rs1 crore have been cut in two buckets of three years to less than five years and five years and above.
Deposits of three years to less than five years have been cut to 8.75% from 9%, while five years and above will yield 8.5% interest down from 9% earlier.
The bank did not give any reason for the cut in deposit rates. On Friday, the bank posted a larger-than-expected 34% drop in third quarter as mounting bad loans amid slower economic growth took its toll, causing its shares to plunge to the lowest level in five months.
Net profit fell to ₹ 2,234.34 crore in the three months ended 31 December from ₹ ,396.06 crore a year earlier.
During the December ended quarter, the bank saw a healthy 16.71% year on year growth in its deposit base. Term deposits grew at 20.27% during the quarter, while current account savings account (CASA) deposits grew at 12.5% year on year. Meanwhile, total domestic advances grew at a slower pace of 15.42% year on year for the December ended quarter.
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