Our Bureau In the backdrop of incremental credit growth outpacing deposit growth in the banking system, State Bank of India has raised interest rates on domestic retail term deposits (up to ₹1 crore) by up to 50 basis points across tenors with effect from February 28.
With India’s largest bank hiking retail deposit rates, other banks are likely to follow suit.
SBI has effected the maximum increase of 50 basis points in four maturity buckets — seven days to 45 days; two years to less than three years; three years to less than five years; and five years and up to 10 years. One basis point equals one-hundredth of a percentage point.
The revised interest rate on deposits in the seven days to 45 days maturity bucket is 5.75 per cent (5.25 per cent earlier).
On the three maturity buckets above two years, the new interest rate is 6.50 per cent (6 per cent earlier).
The bank has upped deposit rates on four maturity buckets — 211 days to less than one year; one year; above one year to 455 days; 456 days to less than two years — by 15 bps. The new interest rate on deposits in these maturity buckets is 6.40 per cent against 6.25 per cent earlier.