State Bank Of India Announces Cuts On Interest Rates For Savings Deposits

The State Bank of India (SBI) on Wednesday (9 October) cut interest rate on savings deposits, with a balance of upto Rs 1 lakh, by 25 bps to 3.25 per cent from 1 November, and slashed retail & bulk term deposit interest rates by 10 and 30 bps respectively for 1 year to less than 2-year tenor from 10 October.

"In view of the adequate liquidity in the system, the State Bank of India announces revision in interest rate on Savings Bank Deposits (with a balance upto Rs 1 lakh) from 3.50 per cent to 3.25 per cent w.e.f. 1 November 2019. Bank also slashes its Retail TD and Bulk TD interest rates by 10 bps and 30 bps respectively for 1 year to less than 2 years' tenor w.e.f. 10 October, 2019," the SBI said in a statement.

SBI shares were trading at Rs 254.95, up Rs 5.85 (2.35%) recovering more than 4 per cent from lows.

Earlier, the bank lowered its Marginal Cost of Funds based Lending Rate or MCLR by 10 basis points across all tenors to 8.05 per cent from 10 October, a move that is likely to make home and other retail loans cheaper for the existing borrowers.

This is the sixth cut in MCLR in FY 2019-20 and it comes days after the Reserve Bank of India (RBI) lowered the repo rate by 25 basis points.

(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)