Ahead of RBI policy move,SBI hikes deposit rates
Ahead of RBI policy move,SBI hikes deposit rates
SBI hiked rates on deposits with maturity of over 1 year. Rate hike is effective from Jul'30,2018, in MPC of RBI had its meeting to review interest rates. The sharpest hike has been on bulk deposits for over 5 years, where rates have been increased by as much as 60 basic points (100 bps = 1 percentage point). But the interest on short term bulk deposit is reduced. Retail deposits for years 2-3;3-4; & 4-5 & above are increased by 10 bps to 6.7%.
The country’s largest lender State Bank of India (SBI) has hiked rates on deposits with maturity of over one year. The rate hike is effective from Monday, in the monetary policy committee (MPC) of the Reserve Bank of India (RBI) had its meeting to review interest rates. The sharpest hike has been on bulk deposits for over five years where rates have been increased by as much as 60 basic points (100 bps = 1 percentage point). But the interest on short term bulk deposit is reduced. Retail deposits for years 2-3; 3-4; and 4-5 and above are increased by 10 bps to 6.7%. New rates from Jul'30,2018 are given below. Tenure(Yrs) Old rates (%) New rates (%) 1-2 6.65 6.70 2-3 6.65 6.75 3-5 6.70 6.85 5-10 6.75 6.85 These rates are increased, at the time when credit demands are rising. Concerns are expressed over inflation due to rising oil prices. It is expected that due to interest hike market expectations would also have future rate increase. RBI has also hiked its bench mark short term lending (Repo rate) by 25 bps to 6.25 % in its monetary policy review.
Ref. : https://timesofindia.indiatimes.com/business/india-business/sbi-hikes-deposit-rates-ahead-of-rbi-policy-move/articleshow/65205334.cms --- Jul'31,2018.
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