Mumbai, Mar 1: The State Bank of India (SBI) on Wednesday steeply increased the bulk deposits rates for various maturities by up to 0.75 per cent with immediate effect. The pricing revision comes after three consecutive revisions in the rates by the lender on bulk term-deposits in the past three months. Also Read - SBI PO 2020: Exam Dates to be Out Anytime Soon, FAQs Answered, Check Details Here

Notably, any upward revision in the cost of funds automatically leads to a pricing revision in loans., under the present loan pricing mechanism that is based on the marginal cost of funds-based lending rates (MCLR). Also Read - Amid COVID-19, Contactless ATMs For Cash Withdrawal May be The New Future For Banks

For retail deposits, below Rs 1 crore, rates have been increased by up to 0.50 per cent, while for deposits maturing in one year to less than two years, the pricing has been raised by 0.15 per cent to 6.40 per cent from 6.25 per cent earlier. Also Read - COVID-19 Aftermath: SBI Plans to Cut Costs, Rejig Workforce, Enable 'Work From Anywhere' For Staffers

All the new rates come into force immediately, the bank said in a statement.

SBI on Wednesday revised upwards the retail deposit rates for the two years to under 10 years bracket by 0.50 per cent to 6.50 per cent. The existing rate is 6 per cent at SBI.

It can be noted that the lender has in the past three months also revised upwards its bulk term deposit pricing in as many months.

For Rs 1 crore to Rs 10 crore bulk deposits, maturing in one year to less than two years, the bank had raised rates by 0.50 per cent from 6.25 per cent to 6.75 per cent. For the deposits in the two to less than three years maturity, the rates have been increased by 0.75 per cent to 6.75 per cent. For above Rs 10 crore bulk deposits maturing between one year and less than two years, the rates have been raised by 0.50 per cent to 6.75 per cent.

Rates for bulk deposits maturing between two to less than three years is increased by 0.75 per cent to 6.75 per cent.

(inputs from PTI)