SBI cuts fixed deposit rate on select maturities by 0.5%

Tags: Banking
State Bank of India today slashed the interest rate on short-term fixed deposits up to 179 days by 0.5%, a move expected to be followed by other lenders.

Interest rate on fixed deposits between 7-179 days has been reduced to 7% from 7.5%, SBI said in a statement.

The new rate would be effective from July 18, it said.

In case of bulk deposits above Rs 1 crore, the downward revision has been effected in two maturity buckets.

The interest rate on term deposits between 7-60 days has been reduced by 0.25% to 6.25% while for 61 days to less than one year, it has been reduced to 6.75% from the existing 7%.

Last month, the central bank had left key policy rate unchanged in its bid to rein in inflation.

The repo rate, at which the Reserve Bank of India lends to banks was retained at 8%. The cash reserve ratio for banks was kept unchanged at 4%.

SBI last reduced its fixed deposit rates in February by up to 0.5% on select maturities.

While deposit rates for maturities of three to five years was lowered by 0.25%, those for five years and above were cut by 0.50%.

EDITORIAL OF THE DAY

  • Electricity generators sit on hundreds of gigawatts waiting for buyers

    Be it a Lok Sabha, Rajya Sabha or a state legislature poll, power — as in electricity — remains a major issue on which elections are won or lost.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Arun Kumar Jain

A complex challenge for our PSUs

Till the mid-1990s, the central government and its companies were ...

Rajgopal Nidamboor

Up the ante of your conscious existence

It sounds cryptic, but is not as complex as it ...

Dharmendra Khandal

The one in which a blue whale was washed ashore

Quite unexpectedly, a gigantic blue whale was washed ashore at ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture