TIL Desk/Business/New Delhi/ State Bank of India (SBI) has cut its interest rates on medium- and long-term deposits of individuals by up to 50 basis points (bps). These will apply to new deposits and renewals. The country’s largest lender kept lending rates unchanged for May, including the marginal cost of funds-based lending rate (MCLR).
The one-year MCLR is eight per cent. Punjab National Bank had reduced its MCLR by 10-15 bps across maturities from Monday; it is to also reduce interest rates on retail (by individuals) term deposits across different maturity buckets by 10-25 bps. SBI’s revised structure shows that for two years to less than three-year term deposits, it will offer 6.25 per cent annually as against the earlier 6.75 per cent.
For all brackets between three years and 10 years, depositors will get 6.25 per cent, as against the earlier 6.5 per cent. The highest rate it offers is for one-year term deposits at 6.9 per cent. Even after this cut, SBI’s rates for medium and long-term deposits are 25-50 bps higher than those offered by HDFC Bank. Another private sector competitor, ICICI Bank, offers 25-50 bps more than SBI on term deposits between two and 10 years.
