SBI cuts deposit rates by up to 50 basis points
Mumbai, May 14: In its third downward revision of deposit rates in two months, State Bank of India (SBI) has cut deposit rate by 50 basis points on various maturities.
The country's largest lender in a bank regulatory statement said that the rate for deposits of 15 to 45 days will be 3.25 per cent, while that for deposits up to 180 days will be 5.5 per cent, and five-year deposits will earn an interest rate of 7.5 per cent
However, the interest rates for deposits of over for over five years and less than 10 years will remain unchanged.
The new interest rates will be effective from May 18, SBI said.
SBI which controls about 25 per cent of the country's loans and deposits, had earlier cut rates on Apr 13 and May 2
On May 8 SBI chairman O.P. Bhatt said, "Our deposits are growing at fantastic rates; we see an excess of supply over demand."
Hinting at a downward revision of rates after a steady rise in deposits last fiscal, Bhatt said, "Our increase in the market share of deposits last year was the highest seen by any bank anywhere and we are currently getting $200 million a day,"