State Bank of India (SBI) has cut rates on select deposits by 25 to 50 basis points, reports CNBC-TV18's Gopika Gopakumar. This is the second instance of SBI cutting rates while the Reserve Bank of India (RBI) stance is still hawkish. SBI has also extended its 8% home loan product till March 2010.

SBI is leaving no stone unturned in reducing their cost of funds - a move largely to improve their margins. They have now reduced their deposit rates for the third time since July this year. They have reduced the deposit rates by 25 to 50 basis points across maturity. In the most popular bucket, which is 1-2 years, deposit rates have been cut from 6.25 to 6%, and in the 3-5 year deposit, the cut has been from 7% to 6.5%.

In the bucket of 1-2 years, the rate cut has been by around 100% since July. So, it looks like SBI is taking this game ahead and reducing the deposits across maturities.

Also read: SBI extends cut-off date for its 'My Home' campaign