The country’s biggest banker State Bank of India (SBI) has cut the retail term deposit rates for deposits below Rs. 1 crore with effect from Monday, December 8.
The bank has revised the rates only for a tenure of one year and above, leaving the short-term deposit rates untouched.
In its filings to the stock exchanges, SBI said that the interest rates for deposits of 1 year and above will be reduced by 25 basis points (0.25 per cent per annum). While the rates for deposits of 1 year to less than 3 years and 3 years to less than 5 years are reduced from 8.75 per cent to 8.50 per cent, for deposits of 5 years and above, the new rate would be 8.25 per cent against 8.5 per cent at present.
However, the interest rates for short-term deposits of 7 days up to 1 year in different terms remain untouched. Rates for deposits of 7 days to 45 days (5 per cent), 46 days to 179 days (7 per cent), 180 days to 210 days (7.25 per cent) and 211 days to less than one year (7.50 per cent) would remain unchanged.
The bank’s action comes in the wake of growing chorus for cut in interest rates as global oil prices are tumbling and as inflation remains under check.
Shares of SBI (face value Rs1) are trading at Rs319.10, down by Rs1.15, on the BSE.
In the last few days, ICICI Bank and HDFC Bank have cut retail term deposit rates by 25-50 basis points in select maturities.
Source : Thehindubusinessline