Millennium Post

SBI cuts medium term deposit rates by 25 bps

State Bank of India on Tuesday cut its interest rate for medium-term deposits by 0.25 per cent to 8.75 per cent. However, it increased rates for shorter tenor deposits of 180-210 days by 0.25 per cent to 7.25 per cent per annum. ‘In view of abundant liquidity coupled with slower-than- anticipated credit pick up, SBI has decided to cut the deposit rates by 0.25 per cent to 8.75 per cent," the bank said in a statement. The downward revision of rates is for deposits between one and three years and is applicable from September 18, it said. With inflation trending down — consumer price inflation for August eased to 7.80 per cent — the rate adjustment will continue to ensure that the depositors are compensated ‘adequately with a positive real rate on their deposits’.
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