SBI or the State Bank of India has cut deposit rates for 1-3 years term deposits to 8.75 per cent from 9 per cent, earlier. The revision in rates is effective from September 18.
“In view of abundant liquidity coupled with slower than anticipated credit pick up, State Bank of India (SBI) has decided to cut the deposit rates by 25 basis points (0.25 per cent),” SBI said.
Simultaneously, SBI has also increased the deposit rate for the 180-210 days deposits to 7.25 per cent from 7 per cent earlier.
“With the inflation also trending down at a faster clip, this rate adjustment will continue to ensure that the savers are compensated adequately with a positive real rate on their deposits,” SBI said.
Headline Inflation fell to a near 5-year low of 3.74 per cent in August, government data showed on Monday.
SBI is the country’s largest lender.