SBI cuts fixed deposit rates by 20 bps

State Bank of India

The country largest lender State Bank of India (SBI) has cut fixed deposits rates by 20 basis points (bps) across tenures effective May 16.

The bank's website says the cut in interest rates on retail domestic term deposits below Rs 3 crore is applicable to both general public and senior citizens.

The lender lowered to 3.3 percent the rates for 7-45 days deposit, 46-179 days to 5.3 percent from 5.5 percent and 180-210 days deposits will now earn interest of 6.05 against 6.25 percent earlier.

On 211 days to less than 1-year deposit, rate has been slashed to 6.3 percent from 6.5 percent, 1 year to less than 2 years to 6.5 percent from 6.7 percent and 2 years to less than 3 years to 6.7 percent from 6.9 percent.

The Reserve Bank of India (RBI) on April 9 cut the repo rate by 25 basis point (bps) to 6 percent while changing the stance to "accommodative" from "neutral".

The central bank’s monetary policy committee is to meet in early June for the bi-monthly review, with economist expecting another rate cut as inflation continues its downward trend.