Business   

SBI cuts deposit rates

By Our Special Correspondent

MUMBAI NOV. 7. State Bank of India today cut the deposit rates with effect from November 10. However, a top bank official said the bank was not planning to cut the lending rates.

While the deposit rate of 15 to 45 days has been cut by 25 basis points from 4.25 to 4 per cent, all other rates of different maturities have been reduced by 50 basis points.

For maturity bracket 46-179 days the rate has been reduced from 5 to 4.50 per cent, 180 days to less than one year decreased from 5.25 to 4.75 per cent, one year to less than two years reduced from 5.50 to 5 per cent, two years to less than three years reduced from 5.75 to 5.25 per cent and three years and above decreased from 6 to 5.50 per cent.

The deposit rates for senior citizens of all maturities also cut by 50 basis points.

The deposit rate for one year to less than two years decreased from 6 to 5.50 per cent, two years to less than three years to 5.75 per cent from 6.25 and three years and above to 6 per cent from 6.50 per cent.

While talking to The Hindu, B. D. Sumitra, Deputy Managing Director, SBI, said, "the last rate cut by State Bank of India was effected in May and after that there was a cut in repo rate in August. Also interest rates of government securities have been coming down.

Earlier K. Cherian Varghese, Chairman and Managing Director, Corporation Bank, said, "We will review the rates as there is a case for equitable distribution of the interest rate burden across different segments of the economy.

"But any reduction in the lending rates has to be preceded by a reduction in the deposit rates.''

Printer friendly page  
Send this article to Friends by E-Mail

Business

News: Front Page | National | Southern States | Other States | International | Opinion | Business | Sport | Miscellaneous |
Advts: Classifieds | Employment | Obituary |

Stories in this Section

• TCS to invest Rs. 350 cr. to create world-class centres
• Jaitley assures exporters more incentives
• Award for TVS MD
• Less visible but critical parts of the monetary policy
• Bank takes possession of Pentasoft property
• Sensex dips by another 75.97 points
• Rupee strides to one-month high
• Robust growth in cell subscriber base
• ITC buys Bilt Packaging for Rs. 233 cr.
• SBI cuts deposit rates
• Siemens pays 40 p.c. final
• Stock Market Index
• Bullion rates
• Exchange rates

Copyright © 2003, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu