SBI's interest rate on 7-179 days fixed deposit would come down to 7% from the existing 7.25%.
New Delhi: Ahead of the Reserve Bank of India (RBI)'s mid-quarter review of the monetary policy later this month, country's largest lender State Bank of India (SBI) on Thursday slashed fixed deposit rates by 0.25% for select maturities, reports PTI.
The bank has decided to revise its retail term deposit interest rates with a reduction by 0.25% in tenors up to 240 days, SBI said in a statement. The new rates would be effective from Friday.
RBI is scheduled to announce mid-quarter review of monetary policy on 18th June. It is expected that the central bank may cut policy rate by by 0.25% to spur growth.
Even RBI Deputy Governor Subir Gokarn had said that there is a room to ease policy stance in the light of moderating growth and falling crude oil prices.
With the revision, SBI's interest rate on 7-179 days fixed deposit would come down to 7% from the existing 7.25%. Even for 180 days term deposit, the interest rate would be 7%, down 0.25%.
The base rate or minimum lending rate of SBI stands at 10%. Base rate is the benchmark rate below which a bank cannot lend.
The bank last revised its fixed deposit rates in April. It slashed interest rates on fixed deposits by up to 1% across various maturities.
The decision had come following the RBI's decision to cut key interest rate by 0.5% to 8% in its annual credit policy during April.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
