The largest lender of the country, State Bank of India has raised deposit rates on different maturities. The rise has been as much as by 150 basis points.
The banking major has declared the single largest hike in 45 day deposits by as much as 150 bps since 1997. Such deposits would now fetch 4% interest as compared to 2.5% earlier.
Deposits in the tenor ranging from 15-45days to 10 years would experience an interest rate hike between 25 bps to 150 bps.
The interest rate on one-year fixed deposits stands at 6.75%, for three years at 7.25% and for five years at 7.50%.
The bank has also come up with floating rate term deposits which are linked to its base rate. Deposits of tenor one year, three years and five years will be linked to the base rate which is 7.5% for the bank.
1 year floating rate deposits would fetch 7% interest which is 50 bps below PLR. 3 year deposit would earn 25 bps less than base rate that is 7.25% while the interest would be same as base rate that is 7.5% for 5 year deposits.
"The increase is sharp on short-term deposit rates, as we want to be active in the short-term lending and investment market," a senior SBI official said.