Public sector behemoth State Bank of India (SBI) today slashed its deposit rates across certain maturities above six months by 0.25-0.5 per cent effective from Monday.
The rate cut came shortly before the Reserve Bank's quarterly review of the annual monetary policy on Tuesday and is expected to put pressure on other banks to follow suit.
With today's reduction, interest rate for deposits having a maturity of one year to less than two years, would stand at 6.5 per cent against 7 per cent earlier, an SBI release said.
Rates for deposits in 2 years-1000 days maturities have been revised to 7 per cent (7.25 per cent) and 7.25 per cent (7.5 per cent) respectively, the bank said.
Similarly, deposits having 1001 days to less than 3 years will now offer 7 per cent (7.25 per cent).
The bank will offer 7.5 per cent (7.75 per cent) and 7.75 per cent (8 per cent) rates for 5-8 years and 8-10 years maturity deposits, it said.
Also, 181 days to less than 1 year maturity deposits will now attract a rate of 6 per cent against 6.25 per cent earlier, the bank said.
The reduction will be applicable for deposits below Rs 1 crore, SBI said.
