SBI cuts short-term retail deposit rates by 15 bps, effective July 15

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State Bank of India (SBI), the country's largest lender, has cut interest rate on short-term retail domestic deposits by 15 basis points across tenors effective July 15. 

The rate cut, the third such instance in the current financial year (FY26), comes in the backdrop of improved liquidity conditions and the policy rate cuts by the Reserve Bank of India (RBI). 

Retail liabilities are deposits below ₹3 crore. The short-term deposits have maturity of up to one year. 

For deposits with maturity between 46 to 179 days, the revised rate would be 4.90 per cent from 5.05 per cent. The rate for 180 to 210 days would be 5.65 per cent, down from 5.80 per cent. 

The revised rate for 211 days to one-year bucket is 5.90 per cent as against the old rate of 6.05 per cent, according to updated data on SBI’s website. The bank has kept the rate for 7-45 days unchanged at 3.05 per cent. 

 

Since the beginning of FY26, banks have resorted to deposit rate cuts to manage pressure on interest margins, a result of declining yield on advances and rising cost of funds.

 

Besides slashing interest rate on term deposits, SBI has also cut savings deposit rate by 20 basis points to 2.5 per cent in June. The total cut in short term deposit rates has been 60 basis points so far in the current financial year.

 

SBI’s net interest margin (NIM) - the difference between interest received and interest paid - from domestic operations has fallen by 21 basis points from 3.43 per cent in Q4FY24 to 3.22 per cent in Q4Fy25. 

 

Its net interest income (NII) for the reporting quarter grew by 3.21 per cent sequentially to ₹42,775 crore.