SBI cuts deposit rates by 0.25 bps

The State Bank of India (SBI), the country's largest lender, has cut its deposit rates by 0.25 percentage points across all tenures effective 5 October. The new rates will be applicable for deposits below Rs1 crore, SBI said in a release.

This is the second time that SBI cuts deposit rates in a span of less than 30 days.

Beginning 5 October, SBI said, all deposits having tenures between one and two years will attract an interest rate of 6.25 per cent (down from 6.5 per cent).

SBI said all deposits having 2-3 years and 3-5 years maturity would now carry rates of 6.75 per cent (down from 7 per cent) and 7 per cent (against 7.25 per cent) respectively.

Deposits o 5-8 years and 8-10 years maturity will now attract interest rates of 7.25 per cent (7.5 per cent) and 7.5 per cent (7.75), respectively, the bank said.

SBI had twice earlier revised domestic deposits rates downward, on 15 June 2009 and 8 September2009.