SBI reduces interest rates on various tenures by 20-75 bps

Mumbai, July 29: India's largest lender State Bank of India (SBI) on Monday said it will reduce interest rates on retail fixed deposits with longer tenures by up to 20 basis points (bps) and on bulk deposits by 35 bps, with effect from 1 August.

The lending major said that in accordance to the falling interest rate scenario and surplus liquidity, it will realign its interest rate on "Retail Term Deposits (less than Rs 2 crore) and Bulk Term Deposits (Rs 2 crore and above)". "For time deposits with longer tenures, there is a reduction up to 20 bps in the 'Retail' segment and 35 bps in the 'Bulk' segment.

''For time deposits with longer tenors, there is a reduction up to 20 bps (basic points) 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, that is up to 179 days,'' the SBI said in a statement.

According to the revised rates, less than Rs 2 crore term deposits with up to 179 days tenure will earn an interest of 5.75 percent now from 6.25 previously. Interest rates on deposits with 3 years to 5 years tenors were revised to 6.60 percent from 6.70 percent previously.