Shares of country’s largest lender State Bank of India (SBI) today fell 1.62 per cent in early trade on the BSE,after it raised fixed deposit rates on select maturities by up to 1 per cent.
SBI,yesterday raised fixed deposit rates on select maturities by up to 1 per cent,amid tight liquidity situation. Fixed deposits with maturity period of 7-90 days will earn an interest of eight per cent against the existing seven per cent. The rates are effective from today.
The announcement came after market hours yesterday.
Reacting to the news shares of the lender slipped 1.62 per cent to an early low of Rs 2,095.20. The scrip,however,recovered some lost ground and was later trading at Rs 2,108.95,down 0.98 per cent on the BSE at 1042 hours.
Similar movement was witnessed on the National Stock Exchange,where the scrip after opening at Rs 2,120,fell 1.56 per cent to a low of Rs 2,095.75. It was later trading at Rs 2,109.80,down by 0.91 per cent on the NSE at 1049 hours.
Interest rates on 91-179 day and 181-240 day period fixed deposits have been raised by 0.75 per cent and 1 per cent,respectively. The rate of interest will be 8 per cent now.
Interest rate on 241-day to one-year deposits has been raised by just 0.25 per cent to 8 per cent.
SBI becomes the fourth public sector bank to increase fixed deposits rates this month.