State Bank of India (SBI) has reduced interest rates by 75 basis points (bps) to 7% on bulk deposits with maturities between 61 days and less than a year, the bank said in a filing to the stock exchange.
SBI has also decided to cut interest rates on retail deposits by 50 bps to 8.5% for maturities of five years and above. Deposits with maturities of three years to less than five years will yield interest rates of 8.75%, down from 9% earlier. The bank did not give any reason for the cut in deposit rates. On Friday, the bank reported a disappointing net profit of R2,234.34 crore for the quarter ended December 31, down
34% from a year earlier, on account of one-time hits from provisions for loan losses, pension, mark-to-market losses and deferred tax liability.