SBI raises interest rate on bulk deposits by 1 percentage point

State Bank of India (SBI), the country's largest lender, has raised interest rate on bulk deposits by 1 percentage point across certain categories, effective 30 December 2017.

The state-owned lender hiked interest rates by 1 percentage point across all maturities for deposits above Rs1 crore, while rates on deposits of less than that amount were kept unchanged

SBI had raised interest rates on deposits less than Rs1 crore by 25 basis points at the beginning of this month.

Post revision, SBI's rate on bulk deposits with a minimum tenure of 1 year stood at 5.25 per cent. Senior citizens get an extra 50 basis points interest on deposits across all maturities.

Bulk deposits currently account for six per cent of SBI's deposit base.

In an interaction with CNBC TV18, Anshula Kant, deputy managing director and chief financial officer at SBI, said that even after the hike, the bank's bulk deposit rates were 100 bps lower than those offered by its peers.