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State Bank of India has cut interest rates by up to 50 basis points on select short-term deposits of less than one-year duration. India’s largest bank, however, kept its minimum lending rate unchanged at 10 per cent.
In the case of retail term deposits (of less than ₹1 crore), SBI has cut interest rate by 50 basis points to 7 per cent (from 7.50 per cent) in the 7 to 179 days maturity bucket.
However, it has kept interest rates in all other maturity buckets unchanged. One basis point is equal to one-hundredth of a percentage point.
In the case of bulk deposits, SBI has cut interest rates by 25 basis points each on term deposits in two maturity buckets: 7 to 60 days (to 6.25 per cent) and 61 days to less than 1 year (to 6.75 per cent).
Interest rates on bulk term deposits in all other maturity buckets remain unchanged.
A senior bank official said the rate-cut decision was taken in the backdrop of the decline in inflation based on the consumer price index as well as the wholesale price index, and due to the appetite for loans being tepid.
Further, the bank did not cut interest rates on deposits of over one-year duration as it wants to attract deposits of a longer duration.
In a statement, SBI said the new deposit rates are effective from July 18.
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