 "SBI raises fixed deposit rate by 0.2% on select maturity")
Days after RBI hiked short-term lending (repo) rate by 0.25%, State Bank of India (SBI) today raised fixed deposit rate by 0.2% on select maturity.
With the revision, term deposit between 180-210 days less than Rs 1 crore would now earn 7% against existing 6.80%, SBI said in a statement.
The new rate would be effective from tomorrow, it added.
For high valued fixed deposit above Rs 1 crore, interest rates have been reduced between 0.25% to 2%.
The maximum rate reduction of 2% is there in the tenor of 7-60 days. The rate would be 6.50% as against existing 8.50%.
Besides, over Rs 1 crore term deposit between 61 days to 1 year would also attract lower interest of 7.75% against 8.25%, down 0.5%.
At the same time, 2-10 year fixed deposit in the same segment would earn 8.50%, down 0.25%.
Earlier this week, RBI raised short-term lending (repo) rate by 0.25% to 7.75% making cost of fund expensive for the banks.
At the same time, the RBI lowered marginal standing facility (MSF) rate by a similar margin to 8.75%.
Accordingly, the bank rate is reduced to 8.75% with immediate effect. Consequently, the reverse repo rate is adjusted upward to 6.75%.
The RBI has left unchanged other rates such as the cash reserve ratio at 4% and the mandatory holdings in government securities and other liquid assets as a solvency measure (SLR) at 23%.
With the revision, term deposit between 180-210 days less than Rs 1 crore would now earn 7% against existing 6.80%, SBI said in a statement.
The new rate would be effective from tomorrow, it added.
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However, there is no change in the interest rates for other maturities in less than Rs 1 crore bracket.
For high valued fixed deposit above Rs 1 crore, interest rates have been reduced between 0.25% to 2%.
The maximum rate reduction of 2% is there in the tenor of 7-60 days. The rate would be 6.50% as against existing 8.50%.
Besides, over Rs 1 crore term deposit between 61 days to 1 year would also attract lower interest of 7.75% against 8.25%, down 0.5%.
At the same time, 2-10 year fixed deposit in the same segment would earn 8.50%, down 0.25%.
Earlier this week, RBI raised short-term lending (repo) rate by 0.25% to 7.75% making cost of fund expensive for the banks.
At the same time, the RBI lowered marginal standing facility (MSF) rate by a similar margin to 8.75%.
Accordingly, the bank rate is reduced to 8.75% with immediate effect. Consequently, the reverse repo rate is adjusted upward to 6.75%.
The RBI has left unchanged other rates such as the cash reserve ratio at 4% and the mandatory holdings in government securities and other liquid assets as a solvency measure (SLR) at 23%.