|
|
Following RBI's recent rate cut, country's largest lender State Bank of India (SBI) has brought down its deposit rates by 25 basis points. SBI's revised deposit rates will come in to effect from today (May 4). Under the revised deposit rates, the bank will offer a return of 8 percent for 1,000 days. On the other hand, ICICI Bank offers 8.25 percent on 390 days, 590 days and 990 days special deposits scheme. The ICICI bank has also come up with revised rates on April 24.
In short-term deposits, SBI offers 3.75 percent for 15 to 45 days whereas ICICI Bank offers 3.25 percent for 15 to 29 days and 3.5 percent for 30 to 45 days. The Punjab National Bank (PNB) comes with lowest rates with 2.5 percent for 7-14 days and 3 percent for 15-45 days. Announcing the reduction in repo and reserve repo rates, the Reserve Bank of India (RBI) has urged the all the Indian banks to reduce lending rates so as to resurrect the slowing economy.
According to reports, due to the surplus funds with the industry the bank deposit rates will come down further in coming weeks. Several state-run banks have already pulled down their maximum deposits rate to 8 percent and are reluctant to go below that. The state-run banks are not willing to bring the deposit rates below 8 percent, as it will give the scope of competition to small saving deposits, which also offer 8 percent return.
