Mumbai: The country’s largest lender State Bank of India (SBI) announced Tuesday a hike of 40-90 basis points in the interest rates on several bulk term deposits. The revised interest rates on bulk term deposits amounting to Rs 2 crore and above are effective from Tuesday, the SBI said.
While interest rate on deposits maturing between seven days and 45 days has been kept unchanged at three per cent, those maturing between 46 and 179 days will now attract an interest rate of 3.50 per cent as against 3 three cent earlier.
The public sector lender also revised interest rate on bulk term deposits maturing between 180 and 210 days by 40 basis points to 3.50 per cent, as against 3.10 per cent earlier, as per the bank’s website. Deposits maturing between 211 days and less than 1 year will earn an interest of 3.75 per cent, up 45 bps from 3.30 per cent.
The interest rate on bulk deposits having maturities between one year and less than two years has been increased by 40 bps to 4 per cent. For deposits having two years to less than three years maturity period, the rate has been hiked by 65 bps to 4.25 per cent. The interest rate on bulk term deposits for three years and up to 10 years has been increased by 90 basis points to 4.50 per cent as against 3.60 per cent.
Last week, Punjab National Bank said had increased interest rates on term deposits in selected buckets up to 60 basis points from May 7. The new fixed deposit rates are applicable on deposits up to Rs 10 crore, PNB said.
The hike in deposit rates by the banks came after a surprise 40 basis points increase in repo rate to 4.40 per cent on May 4 by the Reserve Bank of India (RBI).
A hike in repo rate by RBI gives banks scope to increase their deposit rates, which in turn provides depositors an opportunity to earn higher interest on their funds parked with banks.