SBI cuts saving account rate by 0.5% on balance upto Rs 1 cr

SBI said revision of saving bank rate will enable the bank to maintain marginal cost of fund based lending rate (MCLR) at existing rates.

By: PTI | New Delhi | Published: July 31, 2017 1:29 pm
demonetisation, rs 200 notes, note ban, SBI, reserve bank of india, indian express news, buisness news, economy However, the bank will continue to offer 4 per cent interest on savings account balance of Rs 1 crore and above.

Country’s largest lender State Bank of India has slashed interest on savings account deposits by 50 basis points to 3.5 per cent on balance up to Rs 1 crore, ahead of RBI’s policy review this week.

However, the bank will continue to offer 4 per cent interest on savings account balance of Rs 1 crore and above.

“The bank is introducing two-tier saving bank interest rate with effect from July 31. While balance above Rs 1 crore will continue to earn interest at 4 per cent per annum, interest at 3.5 per cent will be offered on balance of Rs 1 crore and below,” SBI said in a regulatory filing.

It further said: “the decline in rate of inflation and high real interest rates are primary considerations warranting a revision in rates of interest on savings bank deposits.”

SBI said revision of saving bank rate will enable the bank to maintain marginal cost of fund based lending rate (MCLR) at existing rates.

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  1. S
    Suhas
    Jul 31, 2017 at 4:26 pm
    So SBI will reduce lending rates also? The answer is big no. SBI, a government bank should match its borrowing interest rates to lending. But under the able leadership of arun jetly (jeb katali), these people led bu modi arun and compani unlimited are finding out new ways to fleece poor people.
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      G.Ranga Chary
      Jul 31, 2017 at 4:16 pm
      Why SBI does not maintain uniform Savings Account interest rate? Do the people who can maintain more than Rs.1,00,00,000/- bother if rate of interest is reduced by half a percent on their balances? One more step by SBI to penalise small depositors for whom interest amount on their savings is precious. God save small depositors.
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        Trun
        Jul 31, 2017 at 4:04 pm
        Big blow to defence serving /retired. First Cut FD rates, now they will get lower interest on balance, CSD canteen cutting down on iteams for ex-service man and serving men from 1st Aug,..dont know what else in store for poor defence forces...... looks like first squeezed Kisan and now squeezing Jawan too.
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        1. S
          Suhas
          Jul 31, 2017 at 3:27 pm
          A blow to the common man who keeps his hard earned money with banks as it is seemingly safe.Since more than 90 of account holders have balance below 1 Cr. effectively SBI is reducing its cost of funds. It is time it now cuts the service rates too which are hitting the account holders below the belt. The stipulated minimum balance ensures huge availability of cheap money for this behemoth, where it was expected that there would b reduction in service charges post merger of all subsidiaries. The number of free ATM transactions too has been reduced - to mop up more revenues from gullible customers, when bankers themselves admit that the per transaction charge for ATM is below Rs.3/-. Even debit and credit card transactions are attracting service charges - a fleecing of hard pressed customers. It is time RBI issues fresh guidelines on levy of service charges to all banks. The list of all defaulters should be made public along with the names of bank officials responsible
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            P.C.Kulkarni
            Jul 31, 2017 at 3:14 pm
            What a great pro poor measure
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