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SBI hikes interest rates on deposits of Rs 2 cr and above by 40-90 bps

SBI hikes interest rates on deposits of Rs 2 cr and above by 40-90 bps

SBI hikes interest rates on deposits of Rs 2 cr and above by 40-90 bps
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By PTI May 10, 2022 6:33:43 PM IST (Updated)

The revised rates are effective from today. The move follows a spate of rate hikes by several other banks in wake of RBI raising the repo rate to 4.40% on May 4.

The country's largest lender State Bank of India (SBI) on Tuesday announced a hike of 40-90 basis points in the interest rates on several bulk term deposits. The revised interest rates on bulk term deposits amounting to Rs 2 crore and above are effective from Tuesday, the bank said.

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While interest rate on deposits maturing between 7 days and 45 days has been kept unchanged at 3 percent, those maturing between 46 and 179 days will now attract an interest rate of 3.50 percent against 3 percent earlier. The public sector lender also revised interest rate on bulk term deposits maturing between 180 and 210 days by 40 basis points to 3.50 percent, against 3.10 percent earlier, as per the bank's website.

Deposits maturing between 211 days and less than 1 year will earn an interest of 3.75 percent, up 45 bps from 3.30 percent. The interest rate on bulk deposits having maturities between one year and less than two years has been increased by 40 bps to 4 percent. For deposits having two years to less than three years maturity period, the rate has been hiked by 65 bps to 4.25 percent.

The interest rate on bulk term deposits for three years and up to 10 years has been increased by 90 basis points to 4.50 percent against 3.60 percent.

How other banks revised rates

Last week, Punjab National Bank said had increased interest rates on term deposits in selected buckets up to 60 basis points from May 7.

The new fixed deposit rates are applicable on deposits up to Rs 10 crore, PNB said. The hike in deposit rates by the banks came after a surprise 40 basis points increase in repo rate to 4.40 percent on May 4 by the Reserve Bank of India (RBI).

A hike in repo rate by RBI gives banks scope to increase their deposit rates, which in turn provides depositors an opportunity to earn higher interest on their funds parked with banks. On Monday, several banks, including HDFC Bank, Canara Bank, Bank of Maharashtra and Karur Vysya Bank, revised their lending rates based on marginal cost of funds and repo rate.

Meanwhile, Bajaj Finance, the lending and investing arm of Bajaj Finserv, on Tuesday said it has increased the interest rates on fixed deposits by up to 10 basis points for tenor between 36 and 60 months. The revised rates on FDs (fixed deposits) of up to Rs 5 crore are effective from May 10, 2022, and shall be applicable to fresh deposits and renewals of maturing deposits, the company said in a release.

Post the revision, deposits for the period of 36 months to 60 months will offer a cumulative return as high as 7 percent. Senior citizens can reap the benefit of up to 0.25 percent higher FD rates, which will offer assured returns of 7.45 percent for 44 months, the release said.

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