New Delhi: The State Bank of India (SBI) on Monday reduced the interest rates on deposit on various tenors, citing surplus liquidity and falling interest rate scenario. The interest rates were reduced by 50 to 75 basis points (bps) for time deposits with shorter tenors of up to 179 days, stated the nation’s largest lender SBI in a statement on Monday.Also Read - Big Update For SBI Credit Card Users: They Will Pay Extra Rs 99, Tax For EMI Transactions From Dec 1 | Details Here

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, it said. Also Read - SBI PET Admit Card Announced at sbi.co.in | Know How to Download

A report quoted SBI’s statement which said, “In view of the falling interest rate scenario and surplus liquidity, (SBI) realigns its interest rate on retail term deposits (less than ₹2 crore) and bulk term deposits ( ₹2 crore and above) from 1 August. For term deposits with longer tenors, there is a reduction upto 20 bps in the retail segment and 35 bps in the bulk segment. Interest rates have been slashed by 50-75 bps for time deposits with shorter tenors, up to 179 days.” Also Read - SBI Is New Tenant of Amitabh Bachchan; Check Monthly Rent, Other Details

Meanwhile, SBI has also slashed down the interest rates on bulk deposits of Rs 2 crore and above. The new rates will be effective from August 1, 2019, added the bank.

In the month of May this year, SBI had increased the interest rates for term deposits below Rs 2 crore and between 1 year and less than 2 years, from 6.8 per cent to 7 per cent, mentioned the SBI website. On the other hand, SBI had lowered interest rates across various other maturities.

(With Agency inputs)