State Bank of India (SBI) has increased interest rates on retail domestic term deposits (Below ₹2 crore) by 25-75 basis points on deposits of less than one year tenor.
India’s largest bank also increased interest rates on domestic bulk term deposits (₹2 crore and above) by 10-50 basis points on five out of eight maturity buckets.
The new interest rates are effective from May 15, 2024. This deposit rate hike comes against the backdrop of credit growth outstripping deposit growth.
On retail domestic TDs, SBI has upped the interest rate on deposits of 46 days to 179 days from 4.75 per cent to 5.50 per cent (or by 75 basis points/bps); on deposits of 180 days to 210 days from 5.75 per cent to 6 per cent (up 25 bps); and deposits of 211 days to less than 1 year from 6 per cent to 6.25 per cent (up 25 bps).
The bank’s highest interest rate is 7 per cent on deposits of 2 years to less than three years.
On domestic bulk TDs, SBI has increased the interest rate on deposits of 7 days to 45 days duration from 5 per cent to 5.25 per cent (or by 25 bps); on deposits of 46 days to 179 days duration from 5.75 per cent to 6.25 per cent (up 50 bps), and on deposit of 180 days to 210 days duration from 6.50 per cent to 6.60 per cent (up 10 bps).
In the case of domestic bulk TDs over 1-year duration, the bank has increased the interest rate on deposits of 1 Year to less than 2 years duration from 6.80 per cent to 7 per cent (or by 20 bps) and on deposits of 2 years to less than 3 years duration from 6.75 per cent to 7 per cent (up 25 bps).
