SBI has attempted to align the interest rate on bulk deposit at par with rates on retail deposits and for it the bank had raised rates on bulk deposits by as much as 50-140 basis points effective January 29, 2018.
As told to one of the leading business channels, the MD of the bank said that the move will not hurt the cost of funds for bank significantly.
Last time in the month of November the state-run lender raised interest rates on bulk deposits over Rs. 1 crore by 1%. While the interest rate on retail deposits below Rs. 1 crore were kept unchanged.