Money & Banking

SBI plans to trim rates on retail domestic term deposits by 5-75 bps

Our Bureau Mumbai | Updated on July 29, 2019 Published on July 29, 2019

State Bank of India has decided to cut interest rates on retail domestic term deposits across all maturities by 5-75 basis points with effect from August 1, in view of the falling interest rate scenario and surplus liquidity.

India’s largest bank has also decided to reduce interest rates on domestic bulk term deposits in seven out of eight maturity buckets by 5-75 basis points.

In the case of both retail domestic term deposits (below ₹2 crore) and domestic bulk deposit (₹2 crore and above), SBI has effected the steepest cut of 75 bps in the seven days to 45 days maturity bucket, where the new interest rate will be 5 per cent against 5.75 per cent now.

The smallest interest rate cut of 5 bps is in the two years to less than three years bucket to 6.70 per cent from 6.75 per cent for retail as well as bulk depositors.

In the case of retail depositors, the highest interest that SBI will offer after the new rates come into effect is 6.80 per cent in the one year to less than than one years’ maturity bucket. Currently, the interest rate in this bucket is 7 per cent. In the case of bulk depositors, the highest interest that SBI will offer is 6.70 per cent in the one year to less than than two years (current interest rate: 6.70 per cent) and two years to less than three years (current interest rate: 6.75 per cent) maturity buckets.

The rate cut comes even as NBFCs such as Shriram Transport Finance Company are offering higher interest rates on non-convertible debentures, ranging from 9.30 per cent (for 30 months) to 9.70 per cent (for 84 months) to mop up resources.

Published on July 29, 2019
This article is closed for comments.
Please Email the Editor