Mumbai: India’s largest lender State Bank of India (SBI) has cut interest rates on short-term retail term deposits by one percentage point.

In a stock exchange filing on Tuesday, the bank said it reduced the rates offered on short-term deposits below 1 crore to 6% from 7% for a maturity period of 7 to 45 days. The new rate will be applicable from 7 October, SBI said in the filing.

On 16 September, the bank had cut interest rates by 25 bps on medium-term deposits. SBI had reduced rates to 8.75% for deposits with maturity of one year to less than three years and to 7.25% for those in the 180-210 days category .

In July, too, it had cuts interest rates on fixed deposits of up to 179 days by 50 basis points and on bulk deposits by 25 basis points. One basis point is one-hundredth of a percentage point.