SBI raises deposit rates by up to 10 bpshttps://indianexpress.com/article/business/banking-and-finance/sbi-raises-deposit-rates-by-up-to-10-bps-5469796/

SBI raises deposit rates by up to 10 bps

The new rates ranging from 5 to 10 bps are applicable for deposits below Rs 1 crore and are effective immediately, the bank said on its website.

For fixed deposits maturing in one year to less than two years, SBI has revised its rate to 6.80 per cent from 6.70 per cent earlier.
For fixed deposits maturing in one year to less than two years, SBI has revised its rate to 6.80 per cent from 6.70 per cent earlier. (File)

With the Reserve Bank of India’s bi-monthly monetary policy a week away, State Bank of India, India’s largest lender, on Wednesday increased the fixed deposit rates by up to 10 basis points to 6.80 per cent on select maturities.

The new rates ranging from 5 to 10 bps are applicable for deposits below Rs 1 crore and are effective immediately, the bank said on its website. The SBI follows an increase in deposit rates by HDFC Bank by up to 0.5 per cent and ICICI Bank by up to 0.25 per cent on select maturities earlier this month.

For fixed deposits maturing in one year to less than two years, SBI has revised its rate to 6.80 per cent from 6.70 per cent earlier. For senior citizens, the new rate for the same maturity has been increased to 7.30 from 7.20 per cent. For deposits maturing in two to less than three years, the rate has been increased to 6.80 per cent from 6.75 percent. Senior citizens will get a rate of 7.30 per cent as against 7.25 per cent on deposits with tenor of two to less than three years.

The lender has kept deposits rates unchanged for other maturities. It is offering a deposit rate of 6.80 per cent for tenure three years to less than five years.

Advertising

Earlier this month, HDFC Bank had hiked the interest rate of one-year FD to 7.3 per cent from 7.25 per cent. It is offering 6.5 per cent on FDs with maturity of 5-8 years and 8-10 years, up from 6 per cent earlier.

Banks have been increasing fixed deposit rates with hardening of the overall interest rate regime. Total credit growth from banks to the commercial sector grew at 15.6 per cent year-on-year at Rs 97.32 lakh crore in the fortnight ended November 9, 2018, the highest growth since demonetisation of Rs 500 and Rs 1,000 notes in November 2016, according to a Reserve Bank of India data.

The adjusted non-food bank credit stood at Rs 84.22 lakh crore in the year-ago fortnight. Adjusted non-food bank credit includes non-food bank credit and total non-statutory liquidity ratio (SLR) investments of banks in commercial papers, shares and bonds/debentures.

Bank credit was lowest during the November 2016 to March 2017 period, following the government’s move to demonetise high-value currency notes on November 8, 2016.