SBI raises interest rate on bulk deposits by up to 1.5%

Business

oi-Staff

By Super

Published: Friday, August 30, 2013, 9:25 [IST]

New Delhi: Faced with tight liquidity condition, State Bank of India Thursday raised interest rates by up to 1.5 percent on bulk deposits of over Rs 1 crore.The interest rate for bulk deposits for the tenors 7-60 days will be 9 percent, SBI, the country's largest bank, said in a statement.

Fixed deposits between 61 days to less than one year will be 8.25 percent, it said.The new rates would be effective from August 31, it added.The bank had last revised interest rate on fixed deposits over Rs 1 crore on June 7.As per the existing rate structure, the bank is paying interest rate of 7.5 percent on term deposits of 7-180 days.

Cost of funds has gone up for banks as the Reserve Bank has taken a series of steps to check the fall of rupee against the US dollar.

In order to contain rupee depreciation, RBI has taken slew of measures in the past couple of weeks resulting in the tight liquidity situation for commercial banks.

PTI