Government-owned State Bank of India (SBI) has slashed deposit rates on various tenors due to surplus liquidity and falling interest rate scenario.
Interest rates have been reduced by 50 to 75 basis points (bps) for time deposits with shorter tenors of up to 179 days, the country's largest lender said in a statement on Monday. The new rates will be effective from August 1.
On fixed deposits maturing in seven days to 45 days, it has reduced the rate of interest from 5.75 per cent to 5 per cent. On deposits maturing in 46 days to 179 days, the bank has reduced the interest rate to 5.75 per cent. Earlier it was offering an interest rate of 6.25 per cent.
For time deposits with longer tenors, there is a reduction of up to 20 bps in the retail segment and 35 bps in the bulk segment, it said. For deposits maturing in 180 days to 210 days, SBI has cut the interest rate by 10 basis points. Now the bank will offer an interest rate of 6.25 per cent.
For short-term deposits ranging from 211 days to less than one year, SBI has slashed the interest rate from 6.4 per cent to 6.25 per cent. SBI has also cut deposit rates on bulk deposits of Rs 2 crore and above.
In May, SBI had linked loan and deposit rates to the repo rate of Reserve Bank of India to ensure faster monetary policy transmission.
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