Country's largest lender State Bank of India (SBI) has cut interest rates on deposit across various tenors. Interest rates on fixed deposits from 45 days to ten years has been cut sharply.
The bank cited surplus liquidity and falling interest rate scenario for the cut in rates.
Interest rates on fixed deposits maturing between 10 to 45 days have been reduced by 75 basis points (bps) to 5.00 percent from 5.75 percent. For time deposits with tenors between 46 days and up to 179 days, the rate is now down at 5.75 percent from 6.25 percent earlier, SBI said in a statement on July 29.
Fixed deposits with maturity between 180 days to 210 days will now get an interest rate of 6.25 percent, 10 basis points lower than earlier.
SBI has slashed the interest rate on short-term deposits ranging from 211 days to less than a year to 6.25 percent from 6.40 percent.
The revised rates on all the term deposits across all tenors will be effective August 1. 2019.
Mid-term deposits from one year to less than two years will now get 20 basis points lower interest rates at 6.80 percent.
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, SBI said. It has also cut rates on bulk deposits of Rs 2 crore and above.