Mumbai, Oct. 29: The State Bank of India today slashed interest rates on deposits across all maturities by a whopping 50 basis points, reports our correspondent.
The move followed announcement of the credit policy by RBI in which the bank rate, at which the central bank lends money to banks, was cut by 25 basis points to 6.25 per cent. (See Business Telegraph)
The SBI cut came as a surprise as analysts had expected a reduction in two instalments. SBI sets the pace for other, public and private sector, banks.
With a 50 basis points cut, a deposit for 15 days and up to 45 days will now earn an interest rate of 4.5 per cent; for 46 days and up to 179 days 5.5; for 180 days and less than one year 5.75; for one year but less than two years 6.5; two years to less than three years 6.75 and three years and above 7 per cent.