The State Bank of India has decided to reduce both retail and corporate deposit rates from 1 August in view of falling interest scenario and surplus liquidity, the country's largest lender said.
“For time deposits with longer tenors, there is a reduction up to 20 bps in the Retail segment and 35 bps in the Bulk segment," the SBI said.
Interest rates have been slashed by 50-75 bps for time deposits with shorter tenors, i.e. up to 179 days, the bank added.
Retail deposit rates (below ₹2 crore) for 1 year to less than 2 year maturity will be 6.8% as compared to 7% now. For 2 years to less than 3 years, the rate will be 6.70% as compared to 6.75%.