However, country's second largest bank, Punjab National Bank raised its deposit rate for one-year by 0.25 per cent to 9 per cent.
"The bank has decided to revise downwards the interest rate on domestic term deposits for tenors 5 years and up to 10 years to 8.5 per cent with effect from August 7, 2012," SBI said in a statement.
The bank has reduced interest rate on fixed deposits for amount of over Rs 15 lakh to less than Rs 1 crore by 0.5 per cent for maturity between 5-10 years.
The new deposit rates would be effective from August 7.
"The bank has decided to increase rate of interest on single domestic deposit of less than Rs 1 crore from 8.75 per cent to 9 per cent for maturity of one year," PNB said in a separate filing to the BSE.
PNB further said that NRE term deposits will also attract an interest rate of 9 per cent, as applicable to domestic term deposits.
Yesterday, SBI announced reduction in lending rates by up to 0.5 per cent on home and auto loans effective August 7.
SBI has reduced interest rate on home loans of up to Rs 30 lakh to 10.25 per cent from existing 10.50 per cent (after 0.25 per cent concession over the card rate). (MORE)
