SBI cuts deposit rates in select maturity slabs

State Bank Of India | Bank - Public | BFSI | BSE: 500112 | NSE: SBIN

03 Mar 2009 Evaluate

State Bank of India (SBI) has cut interest rates on fixed deposits in four maturity slabs between one year and three years by 40 to 50 basis points. Come March 9, the highest interest rate that the bank will offer its depositors is 8.50 per cent as against 9 per cent now.

The bank has pared the interest rate on its popular 1,000 days FD scheme by 50 basis points to 8.50 per cent. This scheme, when it was introduced in September 2008, was offering depositors a high 10.5 per cent interest. The bank, reportedly, has been mopping up Rs 1,000 crore daily since the scheme’s inception. With SBI cutting FD interest rates, other public sector banks are also expected to follow suit.

SBI has cut the interest rate on FD in the one year to less than two years maturity bucket by 40 basis points to 8.10 per cent (8.50 per cent now). FDs in the ‘two years to less than 1000 days’ and ‘1001 days to less than three years’ maturity buckets will both fetch 8.25 per cent interest as against 8.75 per cent now. The bank kept the interest rates on FDs in six other maturity buckets unchanged.

SBI also increased FCNR (B) deposits denominated in US dollar by 12 to 21 basis points even as it cut those denominated in Euro by 16 to 24 basis points. It also increased interest on NRE (Rupee) deposits by 12-14 basis points.crack crack