State Bank of India (SBI) on 4 June 2013 announced reduction in interest rate on fixed deposits of maturity up to one year by 0.25 percent to 7.25 percent. It has been decided to revise downwards by 25 basis points the interest rate on bulk deposits above Rs 1 crore for the tenors 7 days to less than 1 year.
Accordingly, the interest rate for bulk deposits for the above tenors will be 7.25 percent per annum with effect from 7 June 2013. RBI lowered the short-term lending (repo) rate to 7.25 percent from 7.50 percent, lowest since May 2011, while retaining the CRR for banks unchanged at 4 percent.
Another public sector lender Oriental Bank of Commerce (OBC) in May had slashed fixed deposit rates by up to 1 percent on select maturities. The fixed deposit rate for maturities ranging from 31-45 days has been reduced to 6 percent from 7 percent. At the same time, term deposit of 180-269 days earns 0.5 percent lower interest rate at 8 percent from earlier rate of 8.50 percent, while interest rate on 91-179 days is down by 0.25 percent at 7.75 percent.
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