A recent press report said that State Bank of Travancore (SBT) has revised interest rates for domestic and NRO term deposits. In addition to that the bank has also updated the schedule by merging ‘time buckets’ of above one year and announced new rates.
According to reports the new schedule comprises of four such buckets
- 15-90 days
- 91-179 days
- 180 days to less than one year and
- one year to 10 years
Earlier, the period up to one year used to have four buckets such as 15-45 days, 46 to 90 days, 91 to 179 days and 180 days to one year, which has been brought down to three.
Reports said that the revision was made to ally the schedule with that of parent State Bank of India. It assumes significance in the context of the move to merge associate banks with the parent bank. The interest rate for deposits above Rs 15 lakh for periods above 500 days will be 9.60 per cent.
The bank had also announced a 25 basis point-hike each in base rate and benchmark prime lending rate to 9.75 per cent and 14.50 per cent. The hike in its interest rate is likely to make its loans such as home loan, personal loan, auto loan etc costlier.