The State Bank of India (SBI) has hiked interest rates on retail domestic term deposits (below 2 crore) in three maturity buckets and on domestic bulk term deposits (₹2 crore and above) in five maturity buckets by 15-20 basis points and 50-75 basis points, respectively.
The revised term deposit rates are effective from June 14, 2022. One basis point (bp) is equivalent to one hundredth of a percentage point.
This deposit rate revision by India’s largest bank comes in the backdrop of the monetary policy committee increasing the policy repo rate (the interest rate at which banks borrow funds from the RBI to overcome short-term mismatches) by 50 basis points, from 4.40 per cent to 4.90 per cent with effect from June 8.
Revised interest rates
The revised interest rate on retail domestic term deposits in the 211 days to less than one year maturity bucket is now at 4.60 per cent (4.40 per cent earlier); the new interest rates on 1 year to less than two years and two years to less than three year deposits are 5.30 per cent (5.10 per cent) and 5.35 per cent (5.20 per cent), respectively.
The revised interest rate on domestic bulk term deposits in the seven days to 45 days and maturity 46 days to 179 days are at 3.50 per cent (3 per cent) and 4 per cent (3.50 per cent), respectively.
Further, the interest rate on domestic bulk term deposits in three maturity buckets has been upped by 75 bps—180 days to 210 days (4.25 per cent against 3.50 per cent), 211 days to less than 1 year (4.50 per cent against 3.75 per cent) and 1 year to less than 2 years (4.75 per cent against 4 per cent).
Earlier, SBI had hiked its marginal cost of funds-based lending rate (MCLR) by 10 basis points across the board with effect from May 15. The one-year MCLR is now at 7.20 per cent, against 7.10 per cent earlier.
The bank’s external benchmark rate (off which all the retail and MSME loans are priced) was upped by 40 bps to 7.05 per cent with effect from June 1, 2022.