SBI hikes deposit rates

The State Bank of India has joined the country’s other commercial banks in hiking term deposit rates by as much as 50 basis points. Though several banks including the Punjab National Bank, the Bank of Baroda and the Oriental Bank of Commerce have hiked deposit rates, bankers ruled out an immediate rise in lending rates but admitted that “short-term rates” were bound to go up.

The new deposit rates, which will be increased by 25 basis points to 50 basis points, will be effective from January 9, an SBI statement said. The rates for deposits maturing between 15 and 45 days will be increased by as much as 50 basis points, and for those maturing between 46 and 179 days by 25 basis points. Deposits maturing between 180 and 364 days will yield 5.5 per cent, up 50 basis points. The bank increased rates by 50 basis points each for deposits maturing between one and three years, and for those between three and five years. For deposits of more than five years the rate is 6.5 per cent, up 25 basis points. The bank will pay 50 basis points more to senior citizens for deposits maturing in a year or more.