Millennium Post
Business

SBI hikes FD interest rates

In a surprise move, the country’s largest bank State Bank of India (SBI) increased interest rates on select fixed deposits by 0.25 per cent on Saturday. Deposits under Rs 15 lakh for a period of three years but less than five years will fetch an interest rate of nine per cent, up from 8.75 per cent, the SBI said in a statement.

The revised interest rate will be applicable from 1 July, it said. The move, which is likely to trim SBI’s profits, comes as a surprise because the bank had earlier this month cut deposit rates by 0.25 per cent in select maturities. This followed the Reserve Bank’s cut in lending rates by 0.5 per cent in April and a cumulative cut in cash reserve requirements to the tune of 1.25 per cent this year.

A hike in interest rate by the SBI is surprising also because it followed a cut of 0.20 per cent in base rate by private lender HDFC Bank on Friday. Bankers are of the opinion that lowering lending rates, which can help boost sagging growth as well as credit pick-up, is possible only if they are able to rein in deposit rates which continue to be elevated due to competition and slowdown in deposit growth.

Meanwhile, the SBI’s peer Union Bank of India announced a cut of up to one percentage point in its lending to micro, small and medium enterprises. Two other small banks – Deustche Bank and Lakshmi Vilas Bank – had also increased deposit rates marginally over the past week.


SBI CELEBRATES BANK DAY

State Bank of India, India’s largest bank and the only Indian Bank to feature in world’s top 100 banks to find a place in global Fortune 500 list, celebrated its Bank Day on Saturday throughout the country. While celebrating 206 years of customer service, a series of functions were organised by the bank which included a blood donation camp in association with Indian Red Cross Society, health check-up camp in association with Moolchand Medcity, tree plantation of fruit bearing plants, and on-the-spot drawing and storytelling competition for children at the head office in the city.

Chief general manager Sunil Srivastava, general managers R G Subramanian, Rakesh Puri, Sidhatha Sengupta, Shailaish Verma, DGM Sujit Guha, and AGM (PR&CSB), New Delhi K K Sharma and other officers & employees actively participated in all the events.
Next Story
Share it