SBI raises minimum rate for home loans to 7.55% from 15 June
Premium- The hike comes after two back-to-back repo rate hikes by the Reserve Bank of India (RBI) in the May and June meetings of the monetary policy committee to rein in runaway price rise
India’s largest lender State Bank of India (SBI) on Wednesday raised minimum rate for home loans to 7.55% from 15 June. SBI on Tuesday had raised its deposit rates by 15-20 basis points across three maturity buckets.
The hike comes after two back-to-back repo rate hikes by the Reserve Bank of India (RBI) in the May and June meetings of the monetary policy committee to rein in runaway price rise. SBI last hiked deposit rates in February, data available on its website showed.
On Tuesday, SBI raised rates on deposits between 211 days to less than 1 year by 20 bps to 4.6% per annum. Deposits in the 1 year to less than 2 years bracket will also fetch 20 bps more, at 5.3%. Those in the 2 years to less than 3 years category will yield 15 bps more at 5.35%. One basis point is 0.01%.
Aggregate deposits in the banking system were ₹165.7 trillion as on 20 May, a growth of 9.3% over the previous year, said CareEdge Ratings. In absolute terms, bank deposits have increased by ₹14.1 trillion over the last 12 months.
“The banking system has been sustaining a liquidity surplus since June 2019 on account of a build up of deposits because of higher growth in bank deposits versus the credit disbursement, except for the last couple of fortnights," the report said on 13 June.