SBI jacks up bulk deposit rates by 50-140 bps in second hike in 2 months

Move comes at a time when the banking system is facing liquidity squeeze; no major impact on cost of funds, says bank

The State Bank of India (SBI) on Tuesday raised interest rates on domestic bulk term deposits by 50-140 basis points (bps) across maturities (effective from Tuesday) at a time when liquidity in the system is strained.
 
This is the second hike in bulk deposit rates by the bank in about two months. It had raised rates by one percentage point (100 basis points) in November last year.
 
Besides SBI, other public sector banks such as Punjab National Bank and Bank of Baroda revised bulk deposit rates earlier this month.
 
Rating agency Icra in its statement said banks