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SBI hikes interest rates on bulk deposits of over Rs 1 crore

For deposits maturing between two and 10 years, the new rate is 6%, up from 5.25%

business Updated: Jan 30, 2018 22:14 IST
Indo Asian News Service, Mumbai
SBI,State Bank of India,SBI interest rates
Tuesday’s rate changes will not make much difference to the State Bank of India cost of funds as bulk deposits only constitute a small portion of the bank’s total deposits.(Mint file photo)

State Bank of India (SBI) increased on Tuesday interest rates on its domestic bulk term deposits by 75-140 basis points with immediate effect.

This follows SBI’s last November increase by 1% on bulk term deposits, defined as those for Rs 1 crore and above.

Retail term deposit rates, for deposits below Rs 1 crore, continue to be the same.

For short-term deposits (46-179 days and 180-210 days), the new rate is 6.25%, up from 4.85%.

On deposits between one year and two years, the SBI will pay 6.25% interest, as against 5.25% earlier.

For deposits maturing between two and 10 years, the new rate is 6%, up from 5.25%.

According to bank officials, Tuesday’s rate changes will not make much difference to the SBI cost of funds as bulk deposits only constitute a small portion of the bank’s total deposits.

First Published: Jan 30, 2018 22:14 IST