SBI first bank to cut fixed deposit rates to below 9%

SBI has cut the deposit rates for 1-3 years to 8.75 percent from 9 percent, while for the period of 180-210 days, it has hiked the rates to 7.25 percent from 7 percent.<br />

FP Staff September 16, 2014 14:45:37 IST
SBI first bank to cut fixed deposit rates to below 9%

India's largest lender, State Bank of India, has revised interest rates on retail term deposits below Rs 1 crore.

SBIhas cut the deposit rates for 1-3 years to 8.75 percent from 9 percent, while for the period of 180-210 days, it has hiked the rates to 7.25 percent from 7 percent.

The interest rate for deposits from 211 days to less than 1 year would remain unchanged at 7.5 percent.

In an interview to CNBC-TV18, SBI Chairman Arundhati Bhattacharya said the reason for a revision in rates is based on the availability of liquidity, while the credit demand has been low.

"We have lot of liquidity in the 1-3 years band, thus we thought it right to cut the rates at that end. Also given the fact that inflation trajectory seems to be in the right direction, we will still be giving a real rate of return to out investors/depositors," she said, adding that the bank will keep reviewing other rates as well.

Updated Date:

Subscribe to Moneycontrol Pro at ₹499 for the first year. Use code PRO499. Limited period offer. *T&C apply

also read

India's GDP may turn positive at 1.3% in Dec quarter of FY2020-21: DBS Bank report
India

India's GDP may turn positive at 1.3% in Dec quarter of FY2020-21: DBS Bank report

The government will release the GDP numbers for the October-December quarter of the current fiscal on Friday

SBI cuts home loan interest rates by 10 basis points to 6.7%; offers additional benefits till 31 March
Business

SBI cuts home loan interest rates by 10 basis points to 6.7%; offers additional benefits till 31 March

The bank said the home loan interest rates will start from 6.7 percent for loans up to Rs 75 lakh and 6.75 percent for loans in the range of Rs 75 lakh to Rs 5 crore