SBI cuts deposit rates by 0.25 pct points

The country’s largest lender, State Bank of India, has reduced its deposit rates by 25 basis points across all tenures.

The country’s largest lender, State Bank of India, has reduced its deposit rates by 25 basis points across all tenures.

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The new rate would be applicable from October 5, the bank said in a statement issued here on Thursday. The revised rates would apply on deposits below Rs 1 crore, the bank said.

The move is expected to help SBI to bring down the cost of funds.

Other banks such as Punjab National Bank and Bank of Baroda have no immediate plans to tinker with deposit or lending rates. “However, these are issues which are constantly being assessed and looked into,” a senior official at BoB said.

The statement issued by SBI said deposits with a tenure of 1-year to less than 2-years, would now have a rate of 6.25 per cent instead of 6.5 per cent. Deposits with 2-3 years and 3-5 years maturity would attract rates of 6.75 per cent instead of 7 per cent and 7 per cent instead of 7.25 per cent respectively.

Deposits with 5-8 years and 8-10 years maturity will now have 7.25 per cent and 7.5 per cent respectively.