State Bank of India has reduced its deposit rates by 25-50 basis points effective from Monday. The bank had last revised its rate downward across maturities by 25 bps on June 15.
Talking to FE, CFO SS Ranjan said deposit rates have been reduced in line with industry developments. However, whether the bank will follow up its decision with a similar reduction in lending rates is yet unknown. ?We are yet to decide on further revision of lending rates after having brought down BPLR by 25 basis points to 11.75%
effective from June 29,? Ranjan said.
Interest on domestic term deposits below Rs 1 crore with a maturity of 181 days to less than a year is now 6%, against the current 6.25%. Those of one year to less than two years is 6.5% from 7%. The bank has left term deposits with a mat-urity of three years to less than five years unchanged
at 7.25%. ?We want to encourage term deposits under this category,? explained Ranjan.