SBI cuts deposit rates sharply, other lenders may follow suit

The term deposit rates will be 20 basis points lower for retail customers, and 50-75 basis points lower for deposits up to 179 days

State Bank of India (SBI) cut its deposits rates for fresh funds across segments on Monday, in view of the falling interest rate scenario and surplus liquidity.

The term deposit rates will be 20 basis points (bps) lower for retail customers and 50-75 bps lower for deposits up to 179 days. For bulk deposits of Rs 2 crore and above, the rate cut would be as much as 35 bps. The new rates are effective August 1.

This would mean lending rates would be cut sharply, too. This will then pass through the cumulative 75 bps rate cuts by the