The Hindu : Business : State Bank hikes deposit rates

Online edition of India's National Newspaper
Saturday, Jun 28, 2008
ePaper | Mobile/PDA Version

Business

Business

State Bank hikes deposit rates

MUMBAI: A day after it hiked the lending rate, State Bank of India on Friday announced an increase in fixed deposit rates by up to 75 basis points, effective from June 30.

For deposits with a duration of 181 days but less than a year, the interest rate would be 8 per cent, up from 7.50 per cent, SBI informed the Bombay Stock Exchange.

Deposits with duration of one year to less than two year and two years to less than three years will fetch an interest rate of 9.50 per cent, up from 8.75 per cent. The deposit rate for three years to less than five years will be 9 per cent against 8.85 per cent.

Short-term deposits

However, interest rates for short-term deposits with durations up to 180 days have not been altered.

The bank has also increased the deposit rates for senior citizens. For them, deposits with a duration of one year to less than three years will fetch an interest rate of 10 per cent as against 9.25 per cent.

On Thursday, SBI increased the Prime Lending Rate by 50 basis points to 12.75 per cent.

The real interest rates on deposits are still fetching a negative real return with inflation touching 11.42 per cent. Earlier during the week, the Reserve Bank of India increased its short-term lending rate and the mandatory level of deposits that banks are required to park with the central bank by 50 basis points each in a bid to contain inflation. This has forced banks to hike their interest rates. — PTI

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

Business

News Update

Stories in this Section