SBI raises deposit charges by 15-20 bps

MUMBAI : India’s largest lender State Bank of India (SBI) on Tuesday raised its deposit charges by 15-20 foundation factors (bps) throughout three maturity buckets.

The hike comes after two back-to-back repo fee hikes by the Reserve Bank of India (RBI) within the May and June conferences of the financial coverage committee to rein in runaway worth rise. SBI final hiked deposit charges in February, confirmed information out there on its web site.

On Tuesday, SBI raised charges on deposits between 211 days to lower than 1 12 months by 20 bps to 4.6% each year. Deposits within the 1 12 months to lower than 2 years bracket may also fetch 20 bps extra, at 5.3%. Those within the 2 years to lower than 3 years class will yield 15 bps extra at 5.35%. One foundation level is 0.01%.

Aggregate deposits within the banking system have been ₹165.7 trillion as on 20 May, a progress of 9.3% over the earlier 12 months, mentioned CareEdge Ratings. In absolute phrases, financial institution deposits have elevated by ₹14.1 trillion over the past 12 months.

“The banking system has been sustaining a liquidity surplus since June 2019 on account of a construct up of deposits due to greater progress in financial institution deposits versus the credit score disbursement, aside from the final couple of fortnights,” the report mentioned on 13 June.

Subscribe to Mint Newsletters

* Enter a sound e mail

* Thank you for subscribing to our publication.