SBI Cuts Fixed Deposit Interest Rates. Details On Revised FD Rates

SBI Cuts Fixed Deposit Interest Rates. Details On Revised FD Rates

SBI or State Bank of India, India’s largest bank, has cut its bank FD or fixed deposit rates by 25 basis points across most maturities, with effect from November 1, 2017. The one-year SBI fixed deposit will fetch an interest rate of 6.25 per cent, from 6.50 per cent earlier, according to the bank’s website. Senior citizens will get 6.75 per cent, as compared to 7 per cent earlier. With State Bank of India cutting its fixed deposit rates, other banks are also expected to follow suit. Bank FD rates are on a downward trend. Flush with deposits after demonetisation and with credit offtake remaining weak, banks have been cutting down on both deposit as well as lending rates.

SBI’s Latest Fixed Deposit (FD) Rates For Deposits Below Rs 1 Crore

The revised SBI interest rates are as under:

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Tenors Revised For Public w.e.f. 01.11.2017 (%) Revised for Senior Citizens w.e.f. 01.11.2017 (%)
7 days to 45 days 5.25 5.75
46 days to 179 days 6.25 6.75
180 days to 210 days 6.25 6.75
211 days to less than 1 year 6.25 6.75
1 year 6.25 6.75
Above 1 year to 455 days 6.25 6.75
456 days to less than 2 years 6.25 6.75
2 years to less than 3 years 6 6.5
3 years to less than 5 years 6 6.5
5 years and up to 10 years 6 6.5

SBI, the country’s top lender by assets, has also cut its lending rate (marginal cost-based lending rates or MCLR) across maturities by 5 basis points. This is SBI’s first lending rate cut in 10 months, according to Reuters.

SBI, which accounts for more than a fifth of India’s banking assets, lowered the 1-year MCLR to 7.95 per cent from 8 per cent, according to a notification.

The RBI had last year unveiled the MCLR, which sought to remove much of the discretion commercial banks have to set lending rates. Despite that the pace of bank lending rate cuts has lagged the reduction in policy rates, which fell by a total 200 basis points since January 2015.

The RBI is keen for banks to lower lending rates further to accelerate credit growth and private investment in an economy growing at its slowest in more than three years. Bank loans last financial year grew at their slowest pace in more than six decades.

Flush with deposits after a surprise scrapping of high-value notes last year, banks led by SBI had last sharply cut lending rates under the MCLR system in early January.

Meanwhile, another public sector lender Allahabad Bank also reduced the MCLR rate by 0.15 per cent across all tenors.

 

 

Source by msn..

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