State Bank of India hikes deposit rates up to 150 basis points
December 6th, 2010 - 7:44 pm ICT by IANS
Mumbai, Dec 6 (IANS) India’s largest lender, the government-run State Bank of India (SBI) Monday hiked its deposit rates by up to 150 basis points, in a move that should encourage deployment of domestic savings in the commercial banking system.
The announcement comes soon after Reserve Bank of India Governor Duvvuri Subbarao told banks to raise their deposit rates and bring down their lending rates.
All changes are effective Dec 7, SBI said in a statement to the bourses.
The governor said Indian banks have done well in bringing more people into the banking network, providing them avenues to secure their financial future but much more needs to be done.
“The net interest margin of the Indian banking system is higher than that in some of the other emerging market economies even after accounting for mandated social sector obligations such as priority sector lending and credit support for the government’s anti-poverty initiatives,” Subbarao had told a banking conclave.
As per the revision applicable on deposits below Rs.1 crore, the interest rates have been raised for deposits up to 1 years from 6 percent to 7.25 percent, while for those having a tenor of 3-5 years, the interest rate has gone up from 7.25 percent to 8.25 percent.
SBI’s decision to increase deposit rates also comes after the country’s largest private lender ICICI Bank raised its lending as well as deposit rates by up to 50 basis points effective Dec 6.
- SBI, PNB hike interest rate on NRE term deposits (Lead) - Dec 27, 2011
- Global slowdown, reason for lowering growth projection: RBI - Oct 25, 2011
- ICICI Bank hikes lending, deposit rates - Dec 04, 2010
- Inflation-focussed RBI hikes rates again, may hold off another revision - Oct 25, 2011
- PNB, Allahabad Bank hike lending, deposit rates - Jul 29, 2011
- SBI to hike lending rates, loans get dearer - Apr 19, 2011
- Inflation will come down to 7 percent by March: RBI - Oct 25, 2011
- SBI, Allahabad Bank cut interest rates - Apr 23, 2012
- SBI lowers deposit rates by 0.25 percent - Jun 07, 2012
- Bank of India raises interest rates on NRE term deposits - Dec 29, 2011
- Lower lending rates, hike deposit rates, banks told - Dec 03, 2010
- Inflation still above acceptable levels: Subbarao - Jun 19, 2012
- SBI hikes deposit rates by 25-75 bps, keeps base rate steady - Sep 30, 2010
- Inflation forces India's central bank to hike rates again (Roundup) - May 03, 2011
- India's Reserve Bank hikes key rates to tame inflation (Lead) - Jan 25, 2011
Tags: bank of india, banking network, banking system, basis points, bourses, conclave, emerging market economies, financial future, indian banks, interest margin, net interest, priority sector, private lender, reserve bank of india, rs 1, sbi, social sector, state bank, state bank of india, subbarao