SBI raises deposit rates by 15-20 basis points across three maturity buckets


MUMBAI : India’s largest lender State Bank of India (SBI) on Tuesday 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, showed data available on its website.

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-year bracket will also fetch 20 bps more, at 5.3%; and those in the 2 years to less than 3 years will yield 15 bps more, at 5.35%.

CareEdge Ratings said that aggregate deposits in the banking system stood at Rs165.7 trillion as on 20 May, a growth of 9.3% over the previous year. In absolute terms, bank deposits have increased by Rs.14.1 trillion over the last twelve months. 

“The banking system has been sustaining a liquidity surplus since June 2019 on account of build-up deposits due to higher growth in bank deposits versus the credit disbursement, except for the last couple of fortnights,” the report said on 13 June. 

On 10 June, DBS Bank India hiked term deposit rates by 10-50 bps across tenors. Private lender Kotak Mahindra Bank also recently announced a rise in savings account interest rate as well as fixed deposit interest rates across various tenors.

Shanti Ekambaram, group president – consumer banking, Kotak Mahindra Bank had said in a statement that interest rates are on an upward trajectory.


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