The State Bank of India has decided to lower its interest rates for its savings accounts and fixed deposits from November 1 as the bank has 'enough' liquidity as of now. SBI is said to have a deposit base of over Rs 28 lakh crore.
“In view of the adequate liquidity in the system, State Bank of India announced a revision in the interest rate on Savings Bank Deposits (with balances up to Rs 1 lakh) from 3.50% to 3.25% w.e.f. 1st November 2019. Bank also slashes its Retail TD and Bulk TD interest rates by 10 bps and 30 bps respectively for ‘1 year to less than 2 years’ tenor w.e.f. 10th October 2019,” the bank said in a release.
However, the country's largest lender left the interest rates on savings accounts deposits above Rs 1 lakh unchanged.
Earlier, the bank had cut interest rates on fixed deposits after the RBI slashed the repo rate. The state-owned bank cut the interest rate on retail fixed deposits by 10 basis points for 1 year to less than 2 years maturity from October 10.
SBI has also revised interest rates on bulk term deposits of Rs 2 crore or above. The interest rate has been lowered by 30 basis points for deposits which have 1 year to less than 2 years maturity.