SBI in view of the falling interest rate situation across the financial system and increasing liquidity has realigned its rates with a cut up to 20bps and on bulk deposits a cut of up to 35 bps will come into effect from August 1, 2019.
For shorter tenors of up to 179 days, the public sector bank said it will slash deposit rates by 50-75 bps.
"In view of the falling interest rate scenario and surplus liquidity, (SBI) realigns its interest rate on retail term deposits (less than ₹2 crore) and bulk term deposits ( ₹2 crore and above) from 1 August. For term deposits with longer tenors, there is a reduction upto 20 bps in the retail segment and 35 bps in the bulk segment. Interest rates have been slashed by 50-75 bps for time deposits with shorter tenors, up to 179 days," the bank said in a statement.
On fixed deposits with maturity ranging between 2 years and less than 3 years, the cut is of 5 bps of 6.75%. On deposits between 3 years and less than 5 years, the rate of interest was decreased marginally from 6.8% to 6.7%.
In May, the bank on deposits below Rs. 2 crore, increased rate from 6.8% to 7% with tenure between 1 year and less than 2 years.