The largest lending institution of the country – State bank of India yesterday unveiled the new rates. The SBI has reduced its deposit rates by 0.5%. For the short term deposits for the tenure of 179 days the bank has reduced the rates by 0.5%. It is assumed that the other banks might go for the same.
For the period of 7 -179 days earlier the rate was 7.5% now it has been reduced to 7%. On the other hand for deposits of more than 1 crore, the rate for 7-60 days has been reduced by 0.25% and for the 61 days to 364 days the new rate is 6.75% earlier it was 7%. The new rates will be effective from 18th of this month. Prior to this SBI had revised its rates in the month of February. The repo rate at which the apex bank lends to the banks is maintained at the 8%.