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 - After HDFC Bank, SBI Also Faces System Outage, App Services Down
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 - Bank Strike Today: Banking Services Partially Affected as Lakhs of Employees Protest, SBI & Private Banks Functional
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 - Want to Withdraw More Than Rs 10,000? SBI Offers Daily ATM Cash Withdrawal Upto Rs 1 Lakh | Check Details Here
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)