India's largest public-sector lender State Bank of India Tuesday sharply increased interest rates on domestic bulk term deposits by up to 90 basis points. This applies to deposits of Rs 2 crore and above. Fixed Deposits with a maturity of 46 days to 149 days will now earn 50 bps more or 3.5%.
Term deposits maturing in 180 days to 210 days will also give 3.50%, up from 3.10% earlier, a move that will give depositors earn higher income on their money parked in banks. Accordingly, senior citizens will continue to earn 50 basis points more than the card rate for the general public.
The hike in deposit rates comes after the Reserve Bank of India increased its key interest rate by 40 basis points to 4.40% last week.
The interest rate on deposits of two years to less than three years was hiked by 65 basis points from 3.60% to 4.25%.
Deposits in the 46 days to 179 days tenor were revised upward by 50 basis points to 3.50%.
Meanwhile, another state-owned lender Bank of Baroda (BoB) announced an increase in its lending rate by up to 10 basis points as a follow up to the surprise tightening of interest rates by RBI.
The hike is effective from Thursday.
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.
(Published 10 May 2022, 13:19 IST)
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