According to a recent press report SBI has increased the lending rates by 25 basis points and deposit rate by 100 basis points. It has a positive impact on savings because the returns are high, but the home loan and auto loans interest rates have gone higher.
The bank’s current deposit interest rate is 9.50 percent. In addition to the hike in deposit rates it has also increased the benchmark prime lending rate (BPLR) to 14%, the floating inter loan has also increased to 14.25%. For fixed deposit whose maturity period is 1-10 years the interest rate will be 9.25% and for 90 days deposit the interest has been raised from 6.25%-7%.
For deposits ranging from 365 days and 554 days, the interest rate will be 8.25%. The penalty rate has been reduced from 0.50-1% and it is also applicable to the deposits up to the period of 90 days. The RBI has taken measures to tackle the inflation.
The bank has also increased the repo rate to 7.5% and the reverse repo rate to 6.5%. The other banks that have increased its interest rates include Indian overseas bank, Dena bank. SBI stands apart from other banks by increasing both the lending and deposit rates.