SBI hikes desposit rates for maturity of 3 to 10 years

Mumbai, Aug 6; The Country's largest bank State Bank of India (SBI) has increased the rate for maturity of 3-10 years by 25 basis points to 8.50 percent but kept the rate for deposits having tenure of 2 years to less than 3 years unchanged at 8.25 percent.

The revision has come after a few other lenders including Dena bank, Union Bank of India (UBI) and HDFC cut down deposit rates in view of the recent regulatory changes put in by Reserve bank including a hike in Cash Reserve Ratio (CRR), to contain the liquidity in market.

Ironically, the rate revision on deposits has come about on the day when the revised CRR rates becomes effective in the system.

Meanwhile, interest rates on term deposits of maturity between 1 year to less than 2 years have been revised downwards by 25 basis points to 8.00 percent from 8.25 percent.

The bank has also reduced the interest rates offered on super saver term deposit scheme for maturity of 4 years to 5 years by 25 basis points from 9.50 percent to 9.25 percent.

Rate of interest offered on 550 day deposit scheme 'SBI smart deposit' has also been revised downwards by 25 basis points from 9.50 percent to 9.25 percent.

However, senior citizens will receive higher interest rate of 50 basis points above the card rate for deposits of maturity of 1 year and above, said the bank.

According to market watchers, the cut in interest rates on deposits maturity 1-2 years is not likely to have a higher impact on the bank's deposit margins as it has made a proportional increase in deposits rates of tenure of 3-10 years.

The revised rates will come in to effect from August 9.

UNI