SBI raises retail term deposit rates by up to 80 bps

State Bank of India, the country's largest lender, said on Friday it will raise interest rates on retail term deposits below Rs 2 crore by up to 80 basis points from October 22.

While loan growth in India was at a multi-quarter high with a 16.4 per cent jump in the fortnight ended September 23 from a year earlier, according to the central bank data, deposit growth across the industry has remained comparatively tepid at 9.2 per cent.

Also Read | SBI cuts savings deposit rate by 5 basis points to 2.70%; BoB raises FCNR deposit rates

Indian banks are competing harder to boost deposits amid tightening liquidity and rising credit demand ahead of the festive season.

SBI raised interest rates on saving bank deposits above Rs 10 crore by 30 basis points earlier this week.