The country's largest bank, State Bank of India, has raised interest rates on selected fixed deposits for Non-resident Indians by 0.25 percent.

The public sector bank issued a statement which said that the new rates will apply from 17 July. The rates have been increased for fixed deposits with a maturity period between 3 to 5 years in rupee terms. At present, these deposits earn an interest of 8.75 percent, but now the interest rate has been increased to 9 percent.

Interest rates on other fixed deposits have not been changed.

At the same time, when SBI has hiked its rates on selected term deposits, its subsidiary State Bank of Bikaner and Jaipur (SBBJ) has slashed its interest rates on term deposits for resident Indians by 0.25 percent. The new interest rates will be applicable on term deposits with maturity between 1 to 3 years, on which rate has been reduced to 9.25 percent, and between 3 to 5 years, on which rate has been reduced to 9.25 percent.

Another state owned bank, Bank of India, has reduced interest rates on few fixed deposits by 0.25 percent. BOI is offering new interest rates on term deposits with a maturity period between 2 to 3 years, which has been decreased to 9 percent, and between 3 to 10 years, which has also been decreased to 9 percent.