State Bank of India (SBI) on Thursday announced lowering of interest rates by 0.25 per cent on term deposits of select maturity period, giving an indication of easing monetary situation.
“The bank has decided to revise its Retail Term Deposit interest rates with a reduction by 0.25 per cent in tenors up to 240 days,” SBI said in a regulatory filing to the Bombay Stock Exchange. The new rates will be effective from June 8, it said. SBI had refrained from lowering rates despite cut in policy rates by the central bank in March.
Reduction in deposit rates give an indication that the bank might lower lending rates in the coming weeks.