SBI has increased by 1 percentage point interest rates across all maturities for bulk deposits higher than Rs1 crore, taking the effective rate to 5.25%
Mumbai: State Bank of India (SBI) raised interest rates on bulk deposits by 1 percentage point in certain categories, effective Thursday.
India’s largest lender increased interest rates by 1 percentage point across all maturities for bulk deposits greater than Rs1 crore. It left rates for deposits below Rs1 crore unchanged—these were last reduced by 25 basis points on 1 November.
One basis point is one-hundredth of a percentage point.
After the revision, the interest rate for deposits above Rs1 crore and tenors of at least one year stood at 5.25%. Senior citizens get an extra 50 basis points across all maturities. The bank decided to hike rates to catch up with the interest rate levels of other banks, said a senior executive on condition of anonymity.
Deposit growth in India’s banks has fallen to 8.14% as on 10 November compared to 15.9% a year ago.
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