New Delhi, Jun 7 (PTI): India’s largest lender State Bank of India on Thursday slashed interest rates on fixed deposits in select maturities by 25 basis point for tenors up to 240 days.
After the revision, the interest rate on 7-179 days fixed deposit would come down to 7 per cent from 7.25 per cent.
Interest rate would be 7 per cent for 180-day term deposit, down 25 basis point.
The bank has made no change in the lending rates. The base rate or minimum lending rate of SBI stands at 10 per cent.
The decision to cut deposit rates by the country's largest bank assumes significance as it comes a few days ahead of the Reserve Bank's mid-quarter review of the monetary policy on June 18.
The central bank is expected to cut policy rates by 25 basis point to spur economic growth.
RBI Deputy Governor Subir Gokarn had said earlier this week that there is a room to ease policy stance in the light of moderating growth and falling crude oil prices.
SBI had last revised its fixed deposit rates in April. It had slashed interest rates on fixed deposits by up to 1 basis point across various maturities.
The rate revision had come following the RBI's decision to cut key interest rate by o5 basis point to 08 basis point in its annual credit policy during April.