SBI Cuts Interest Rates on Deposits of 5 Years and More
Mumbai: State Bank of India (SBI) lowered interest rates on domestic term deposits of maturity of five years and more by 0.25 percent to 8.50 percent.
"The bank has decided to revise downwards the interest rate on domestic term deposits for tenors 5 years and above to 8.5 percent with effect from August 7, 2012," State Bank of India (SBI) said in a filing to the BSE.
The country's largest bank offers an interest rate of 8.75 percent on deposits below 
15 lakh, and 9 percent on deposits from 15 lakhs to less than 1 crore.
15 lakh, and 9 percent on deposits from 15 lakhs to less than 1 crore.
Punjab National Bank (PNB), however, has increased the interest rates on deposits by 0.25 percent to 9 percent for maturity of one year . "The bank has decided to increase rate of interest on single domestic deposit of less than 1 crore from 8.75 percent to 9 percent for maturity of one year," PNB said in a separate filing to the BSE. PNB further said that NRE term deposits will also attract an interest rate of 9 percent, as applicable to domestic term deposits.
1 crore from 8.75 percent to 9 percent for maturity of one year," PNB said in a separate filing to the BSE. PNB further said that NRE term deposits will also attract an interest rate of 9 percent, as applicable to domestic term deposits.
SBI yesterday announced reduction in lending rates by 0.5 percent on home and auto loans.
The decision to alter deposits rates within days of Reserve Bank announcing its first quarterly monetary policy review. The central bank, despite pressure from India Inc, decided to keep the key interest rate unchanged in view of high inflation.
RBI, however, had lowered the Statutory Liquidity Ratio (SLR), the portion of deposits that banks are required to invest in government bonds, by one percent to 23 percent.
