State Bank of India launches spl scheme 'Amrit Vrishti' to garner deposits

SBI's Amrit Vrishti offers 7.25% on deposits for 444 days

The State Bank of India (SBI) has launched a special deposit scheme “Amrit Vrishti” offering 7.25 per cent interest on deposits for 444 days, the bank said in a release on Tuesday. The scheme also offers an additional 0.50 per cent interest rate to senior citizens.

This comes amid concerns over slow deposit mobilization by banks, resulting in a higher credit-deposit growth gap. Previously, Bank of Baroda (BoB) and Bank of Maharashtra have also launched special deposit schemes, offering higher interest rates to garner deposits.

BoB's special scheme, dubbed “BoB Monsoon Dhamaka Deposit Scheme,” offers interest rates of 7.25 per cent for 399 days and 7.15 per cent per annum for 333 days for deposits below Rs 3 crore. Meanwhile, Bank of Maharashtra’s special scheme has four buckets for deposits up to Rs 10 crore. It is offering 6.90 per cent interest for 200 days, 7.10 per cent for 400 days, 7.15 per cent for 666 days, and 7.25 per cent for 777 days, as indicated on their website.

SBI’s special deposit scheme is available for investment until March 31, 2025. “...(Amrit Vrishti) is a new variant of a term deposit scheme, designed to meet the requirements of a diverse range of customers. The scheme reflects SBI's commitment to providing our valued customers with avenues to grow their wealth,” said Dinesh Khara, chairman, SBI.

The Reserve Bank of India (RBI) has been repeatedly warning banks about the rising credit-deposit ratio, which could lead to a systemic risk if credit growth continues to outpace deposit growth.