SBI lowers rates on retail term deposits
1 min read . Updated: 07 Jun 2012, 02:37 PM IST
PremiumSBI lowers rates on retail term deposits
Mumbai: State Bank of India (SBI), the country’s largest lender, said on Thursday it will cut retail term deposit rates by 0.25 percentage point for tenors up to 240 days.
“This is rebalancing of different buckets of maturity," Diwakar Gupta, managing director and chief financial officer, said by phone.
“The bank is committed on softer interest rate regime… with this cut we are testing the waters."
The bank will check liquidity conditions to see if any rate cuts can be passed on to borrowers as well. However, he didn’t commit to a lending rate cut as yet.
SBI’s base rate, or minimum lending rate, is 10%.
The bank offers the highest rate of interest on short-term deposits. The bank raised its short-term rates by as much 2.25 percentage points in May last year.
anup.r@livemint.com
