SBI cuts shorter term bulk deposit rates, increases longer term rates

Since the bank adjusted its rates in both directions, a clear rate signal is not evident

On the first day of a three-day meeting of the monetary policy committee (MPC), the country’s largest lender, State Bank of India (SBI), moved to hike its long-term deposit rates, albeit marginally.

SBI also slashed its shorter term bulk deposit rates (Rs 10 million to Rs 100 million) by 25-45 basis points (bps), while increasing the longer term bulk deposit rates by 5 bps to 60 bps.

One bps is a one-hundredth of a percentage point. The Reserve Bank of India (RBI) announces its monetary policy decision on Wednesday, August 1.

Since the bank adjusted its rates in both directions,