The largest lender in the country, State Bank of India had announced a steep cut in Fixed deposit rates between 15 and 75 basis points. Many banks have been following the queue of the Reserve Bank of India after it lowered the deposit rates up to 135 basis points so far this year.SBI will cut the interest rate of FD rates by 15 bps for maturity between one year to less than two years.
Together with steep cuts in FD rates SBI had also lowered the lending rates by 5 points across all tenors. With this reduction, the one-year marginal cost of fund-based lending rate (MCLR), to which most of its loan prices are linked, will come down to 8 percent, the bank said in a statement.
The volatility in the market is cited as the main reason for the revised rates. The new FD rates will be effective from November 10 and the Lending rates from Friday, November 9.