Business
SBI cuts interest rates on deposits
MUMBAI, DEC. 11. State Bank of India today reduced its interest rates by 25 basis points on fresh domestic term deposits with effect from tomorrow.
The bank has also reduced the interest payable on deposits of senior citizens by the same margin.
Earlier, four banks including Union Bank of India, Bank of Baroda and Bank of India had cut their interest rates on deposits in the range of 25 to 50 basis points.
The downward revision has been triggered by dip in yields on government securities, according to market sources.
The SBi's asset-liability committee took a stock of the situation in the wake of falling yields and decided to reduce the interest rates to protect the spreads.
SBI, in a statement, said the new rates for less than Rs. 1 crore for 15 to 45 days would remain unchanged while that of 46 to 179 days would stand reduced to 6.25 per cent (from 6.5 per cent), 180 days to less than one year 6.5 per cent (6.75 per cent), one year to less than three years 7.75 per cent (8 per cent) and three years and above 8.25 per cent (8.5 per cent).
The interest rates for deposits for above Rs. 1 crore would also stand reduced by 0.25 per cent.
Senior citizens will also stand to loose by 0.25 per cent on their deposits.
The new interest would be 8.5 per cent (8.75 per cent) for deposits for one year to less than three years and 9 per cent (9.25 per cent) for deposits of three years and above.
Similarily, the rates on NRE deposits have been revised by 25 to 50 basis points.
— PTI
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