SBI hikes bulk deposits rates by 40-90 bps, with immediate effect

All deposits more than 3 years to earn 4.5% rate of interest;m Bajaj Finance increases FD rates by 10 bps

State Bank of India (SBI), the country’s largest lender, has increased interest rate on its bulk term deposits (Rs 2 crore and above) by 40-90 basis points, with effect from May 10. Bajaj Finance, a non-banking finance company, has also increased fixed deposit rates by upto 10 bps.

The increase in interest rate on deposits comes close on the heels of the monetary policy committee (MPC) sharply revising the benchmark repo rate upwards by 40 basis points to 4.40 per cent in an off-cycle meeting to tame rising inflation.  

The maximum increase by SBI is 90 basis points, in the