SBI cuts savings bank rate to 3.5% on deposits up to Rs 1 cr

Mumbai, July 31:  

The decline in rate of inflation and high real interest rates have prompted State Bank of India to cut the savings bank deposits rate from 4 per cent to 3.5 per cent on deposits below Rs 1 crore.

This cut in savings bank rate will prompt many banks to follow suit.

India’s largest bank said savings bank deposits above Rs 1 crore will continue to earn 4 per cent interest.

The bank said there has been a significant outflow of current account, savings account deposits post-demonetisation. Hence, the cut in SB rate will enable it to maintain the marginal cost of funds based lending rate at the current level.

(This article was published on July 31, 2017)

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