State Bank of India raises interest rate on bulk deposits by up to 1.5 pct, fixed deposit rates at 8.25 pct

Written by Press Trust of India | New Delhi | Updated: Aug 30 2013, 17:42pm hrs
Faced with tight liquidity condition, State Bank of India (SBI) today raised interest rates by up to 1.5 per cent on bulk deposits of over Rs 1 crore.

The interest rate for bulk deposits for the tenors 7-60 days will be 9 per cent, SBI, the country's largest bank, said in a statement.

SBI fixed deposit rates between 61 days to less than one year will be 8.25 per cent, it said.

The new rates would be effective from August 31, it added.

The bank had last revised interest rate on fixed deposits over Rs 1 crore on June 7.

As per the existing rate structure, the bank is paying interest rate of 7.5 per cent on term deposits of 7-180 days.

Cost of funds have gone up for banks as the Reserve Bank has taken a series of steps to check the fall of rupee against the US dollar.

In order to contain Indian rupee depreciation, RBI has taken slew of measures in the past couple of weeks resulting in the tight liquidity situation for commercial banks.