The highly networked bank of the country – State Bank of India has slashed down its rates by 0.25%. The bank has reduced its term deposit rates of 1year by 0.25%. Prior to this, HDFC and ICICI bank had reduced their rates last week.
The bank has revised its rates which are applicable from today itself. For the period of one year to less than three years, and three years to less than five years the bank has revised the rate to 8.50% from 8.75%. For deposits of five and year the new rate is 8.25%. Banks prefer cutting deposit rates before pruning lending rates to protect their net interest margins.