Interest rates have been reduced from existing 3 per cent to 2.75 per cent
State Bank of India (SBI), the country's largest lender, will reduce the interest rates on deposits in retail savings accounts from April 15, 2020.
In a statement issued by the bank on Tuesday, it said that interest rates on all saving deposits will be slashed 25 basis points (bps), or 0.25 per cent, from the existing 3 per cent to 2.75 per cent.
SBI cited "adequate liquidity in the system" behind the move to cut interest rates. Last month, the Reserve Bank of India (RBI) had lowered repo rate by 75 bps to 4.4 per cent, keeping in view, revival of growth amid the economic distress caused due to the outbreak of coronavirus.
In May last year, SBI had linked its large savings deposits rates to the RBI's repo rate.
As on December 31, 2019, the bank has a deposit base of over Rs. 31 lakh crore, according to the bank's release.
Meanwhile, the bank also announced a reduction in its lending rates from April 10. announced a cut of 35 basis points (bps), or 0.35 per cent in its lending rates across all tenors. Following the reduction, the one-year MCLR will come down to 7.40 per cent per annum from the existing 7.75 per cent, the bank said.
At 2:20 pm on Wednesday, the the SBI stock was trading at Rs 183.70, 1.42 per cent lower on the BSE. Meanwhile, the broader market was down about 0.75 per cent in afternoon trade.
