SBI slashes deposit rates by up to 0.50%
India's largest lender, the State Bank of India (SBI) has said that it will slash its retail deposit rates by 0.50 per cent from 18 February, 2014.
The bank said in a filing with the stock exchange that the deposit rates for maturities of three to five years are cut by 0.25 per cent, the maturities for five years and above have been cut by 0.50 per cent. SBI is currently offering an interest rate of 8.75 per cent for three to five year deposits and 8.5 per cent on deposits for five years and longer.
AS for deposits of Rs 1 crore and above with a maturity period of 61 days to less than a year, the rates have been lowered by 0.75 per cent to 7 per cent. Other banks including United Bank of India (UBI) and Canara Bank had revised their rates earlier in the week.
India's central bank, the Reserve Bank of India had raised its key repo rate to 8 per cent during its Third Quarter Review of Monetary of Policy in order to control inflation in the country.