scorecardresearchGood news! SBI hikes term deposit rates by up to 0.80%

Good news! SBI hikes term deposit rates by up to 0.80%

Updated: 22 Oct 2022, 09:50 AM IST
TL;DR.
Fixed deposits of under 2 crore for a period of over 211 days but less than 1 year will earn an interest of 5.50 per cent from October 22, as against 4.70 per cent earlier.
SBI’s capital adequacy ratio under Basel III norms stood at 13.43%, down 23 bps y-o-y. (Pradeep Gaur/ Mint)

SBI’s capital adequacy ratio under Basel III norms stood at 13.43%, down 23 bps y-o-y. (Pradeep Gaur/ Mint)

(PTI) The country's largest lender SBI on Friday upped its interest rates on term deposits by up to 0.80 per cent amid a 'war for deposits' in the banking system.

Fixed deposits of under 2 crore for a period of over 211 days but less than 1 year will earn an interest of 5.50 per cent from October 22, as against 4.70 per cent earlier.

For other maturities, the quantum of the rate hike is lower at 0.25-0.60 per cent, while the 7-45 days deposit rate has been left untouched at 3 per cent per annum, as per a statement.

Credit growth in the system has touched 18 per cent, as per the latest data, while deposits are still trailing by barely touching the double-digit mark amid rate hikes by the RBI to tame inflation.

Lenders have been depending on market-linked instruments on the liability management side as well.

Some of the banks which have announced their numbers for the September quarter have reported that deposit growth has been trailing by a wide margin, leading some bankers to opine that there is a 'war for deposits' in the system. 

First Published: 22 Oct 2022, 09:50 AM IST