BackSBI cuts deposit rates on various tenors by 20-75 bps
For shorter tenors of up to 179 days, the public sector bank said it will slash deposit rates by 50-75 bpsIn view of the falling interest rate scenario and surplus liquidity, SBI said it has realigned its interest rate on retail term deposits
PremiumMUMBAI : India’s largest lender State Bank of India (SBI) on Monday said it will reduce interest rates on retail fixed deposits with longer tenors by up to 20 basis points (bps) and on bulk deposits by 35 bps, with effect from 1 August.
For shorter tenors of up to 179 days, the public sector bank said it will slash deposit rates by 50-75 bps.
“In view of the falling interest rate scenario and surplus liquidity, (SBI) realigns its interest rate on retail term deposits (less than ₹2 crore) and bulk term deposits ( ₹2 crore and above) from 1 August. For term deposits with longer tenors, there is a reduction upto 20 bps in the retail segment and 35 bps in the bulk segment. Interest rates have been slashed by 50-75 bps for time deposits with shorter tenors, up to 179 days," the bank said in a statement.
In May, the bank had hiked interest rates on term deposits below ₹2 crore, between 1 year and less than 2 years, from 6.8% to 7%, according to SBI website. But across many other maturities SBI had lowered interest rates.
On fixed deposits, maturing between 2 years and less than 3 years, SBI had cut interest rate from 6.8 % to 6.75%. On deposits between 3 years and less than 5 years, the rate of interest was decreased marginally from 6.8% to 6.7%.
Meanwhile, the bank linked its savings deposits above ₹1 lakh and short-term loans like overdraft with RBI’s repo rate to improve interest rate transmission for consumers.
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