SBI gains after cutting savings bank rate to 3.5% for deposits below Rs 1 cr

Nifty PSU Bank index was up 3.2% as compared to 0.33% rise in Nifty 50 at 11:37 am.

Shares of public sector undertakings (PSU) banks were trading higher by upto 4%, recovering from their intra-day lows, after the state-owned banking giant State Bank of India (SBI) cut saving bank interest rates.

SBI rallied by 2.7% to Rs 307 on BSE after the bank introduced a two-tier saving bank interest rate from today, due to the decline in the rate of inflation and high real interest rates.

“The Bank is introducing 2 tier saving bank interest rate w.e.f. 31st July, 2017. While balance above Rs 1 crore will continue to earn interest rate at 4% per annum,