SBI cuts interest rates on savings bank accounts

The State Bank of India (SBI) on Wednesday cut interest rate on savings deposits, with a balance of up to Rs 1 lakh, by 25 bps to 3.25 percent from November 1, and slashed retail & bulk term deposit interest rates by 10 and 30 bps respectively for 1 year to

less than 2-year tenor from October 10.

"In view of the adequate liquidity in the system, the State Bank of India announces revision in interest rate on Savings Bank Deposits (with a balance upto Rs 1 lakh) from 3.50 percent to 3.25 percent w.e.f. 1st November 2019. Bank also slashes its Retail TD and Bulk TD interest rates by 10 bps and 30 bps respectively for 1 year to less than 2 years' tenor w.e.f. 10th October, 2019," the SBI said in a statement.

SBI shares were trading at Rs 254.95, up Rs 5.85 (2.35 percent) recovering more than 4 percent from lows.

Earlier, the bank lowered its Marginal Cost of Funds based Lending Rate or MCLR by 10 basis points across all tenors to 8.05 percent from October 10, a move that is likely to make home and other retail loans cheaper for the existing borrowers.

This is the sixth cut in MCLR in FY 2019-20 and it comes days after the Reserve Bank of India (RBI) lowered the repo rate by 25 basis points