SBI slashes deposit rates by 50 basis points

13 May 2009

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State Bank of India (SBI), the country's largest lender, has cut its deposit rate by 50 basis points across various maturities effective 18 May. This brings its deposit rate cut to 75 basis points so far this month and thrice in two months.

Earlier this month, SBI had cut interest rates on deposits across all tenures  by 25 basis points after it lowered deposit rates in mid-April.    

Beginning 18 May, deposits of 15-45 days tenure will attract interest rate of 3.25 per cent, while deposits of up to 180 days will attract 5.5 per cent interest. Five-year deposits will earn an interest rate of 7.5 per cent, SBI said.

Interest rates for deposits of over five and less than 10 years will remain unchanged.

This is the third downward revision of deposit rates in two months by SBI.

SBI, which account for 25 per cent of total bank deposits in the country, last week reported record rise in fourth quarter profit. The bank chairman  O P Bhatt had then hinted at a downward revision in deposit rates.

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