SBI to cut deposit rates by .25% points from tomorrow
TIMES NEWS NETWORK New Delhi: State Bank of India on Saturday decided to cut deposit rates across all maturities by 0.25 percentage points, with effect from June 15. The rate cut will prepare ground to cut lending rates, which is likely to be announced later this month. Saturday’s rate cut is the sixth time the bank cut deposit rates since January 1, 2009. However, during the same period, the bank cut lending rates only once — by 75 basis points. In the last six months, SBI cut deposit rates ranging between 1.75 percentage points and 2.50 percentage points. SBI Chairman O P Bhatt recently said the bank will consider a cut on its bench mark prime lending rate (BPLR); but, high cost of the fund is the main problem in cutting the BPLR, which would lead to reduction in interest rates on most of the loans given by the bank. But, interest rates on old fixed deposits will continue to be the same till their maturities. However, as the interest rates on new deposits have been cut substantially, the overall cost of funds has declined. This, the source said, would enable the bank to cut interest rates on loans soon. Finance minister Pranab Mukherjee, while recently addressing the CEOs of public sector banks, has asked them to cut interest rates to spur growth. After the latest round of rate cut, interest rates on fixed deposits between 15 days and 45 days have been cut to 3%, which is even less than savings account rate of 3.50%. Normally, corporate houses, which operate through current account, where the interest rate is zero, use short-term fixed deposits to earn returns. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
