SBI cuts some deposit rates

Mumbai: State Bank of India (SBI) on Tuesday said it will reduce interest rates on some deposits effective from Friday.

The bank has cut deposit rates of Rs.1 crore or more in two buckets by 25 basis points each. One basis point is one-hundredth of a percentage point. The bank will pay 6.25% interest on deposits of Rs.1 crore or more in the seven days to 60 days bucket, down from 6.50%, while deposits in the 61 days to less than one year bucket will yield 6.75%, down from 7%.

For retail deposits below Rs.1 crore, the interest rate has been cut only in the seven days to 179 days bucket by 50 basis points. Depositors will earn 7% interest in this tenure down from 7.50% currently, SBI said.

SBI’s decision comes just a day after data released from the government showed that both consumer as well as wholesale prices dropped to multi-month lows in June, increasing expectations that interest rates may not rise further.

Consumer price inflation slowed to 7.31% in June, the slowest pace since January, while wholesale-price inflation slowed to 5.43% in June from 6.01% in May.

State Bank of India