After slashing home and auto loans,State Bank of India,Indias largest lender,has reduced its deposit rates by up to 0.5 percentage points with effect from March 9,putting pressure on its competitors to follow suit.
With the revision,deposits for one year and above but less than two years will now carry an interest rate of 8.1 per cent against 8.5 per cent earlier,an SBI release said here today. For deposits of two years and above but less than 1,000 days,the new rate will be 8.25 per cent against 8.75 per cent,the bank said. Also,deposits for 1,000 days will now offer 8.5 per cent (9 per cent),while 1,001 days to less than three years deposits will offer 8.25 per cent compared to 8.75 per cent earlier,it added.
IDBI Bank Ltd has cut its lending rates on home loans. It has reduced the floating interest rates by 100 bps for loans up to Rs 20 lakh. For loans above Rs 20 lakh,floating interest rates have been reduced by 50 bps. The reduction in floating interest rates effective from March 3,2009 would benefit all new customers.
The revised home loan floating interest rates will be 9.75% p.a. for loans up to Rs 20 lakh and 10.25% p.a. for loans above Rs 20 lakh. Simultaneously,the margin on Home Loans has also been reduced to 15% from 20% for loans up to Rs. 30 lakh and to 20% from 25% for loans above Rs 30 lakh. The existing fixed rates of interest for the special scheme home loans viz. 8.25% p.a. up to Rs 5 lakh and 9.25% pa from Rs 5 lakh 20 lakh will continue.