State Bank of India (SBI), country’s largest lender, has reduced deposit rates below Rs 1 crore on select maturities.
The rates have been slashed by 25 basis point in three buckets. Interest rates on tenures of one year to less than three years and three years to less than five years will be 8.50% from 8.75% earlier.
For tenures above five years and above, investors will get 8.25% instead of 8.50%.
The new rates will come into effect from Monday, December 8. The above rates are also applicable in respect of NRE deposits for the tenures of one year and above, SBI said in a notification to exchanges.
Earlier, SBI had cut interest rate on retail term deposits with maturity of seven days to 45 days by 100 basis points to 5%, with effect from November 1.
The bank had also reduced interest rates on retail term deposits with maturity of one year to less than three years by 25 basis points in September.
This move comes at a time when the demand to cut rates by the industry has gained momentum. Earlier, this week two other private sector lenders-ICICI Bank & HDFC Bank also slashed interest rates on retail term deposits.
ICICI Bank has reduced the interest rate on maturity between 390 days and two years by 25 basis points to 8.75%. This new rate is effective from November 28.
On the other hand HDFC Bank has lowered term deposit rates, by 25-50 basis points. The rate cut is effective from December 1 and is applicable on maturity between 46 days and one year.