After RBI’s Repo Rate Hike, SBI Increases Interest Rates on Deposits & Loans

Bhubaneswar: Following the repo rate hike by Reserve Bank of India (RBI) last week, the State Bank of India on Tuesday raised its interest rates on deposits and lending

The SBI said has raised interest rates by 0.20% on domestic term deposits of below ₹ 2 crore for select tenors from June 14. For deposits of 211 days to less than 1 year, the SBI will offer interest rate at 4.60%  against 4.40% earlier. Senior citizens will be offered an interest of 5.10% as against 4.90% earlier, according to national news agency report.

For domestic term deposits of 1 year to less than 2 years, the country’s leading bank has raised the interest rate to 5.30%, up by 0.20%. For senior citizens, the interest rate will be 5.80%. On deposit period of 2 years to less than 3 years, the rate has been hiked to 5.35% from 5.20%, while its is 5.85% from 5.70% for senior citizens.

“Premature penalty for bulk term deposits for all tenors will be 1%. It will be applicable for all new deposits including renewals. The revised rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits,” the agency quoted SBI as stating.

The SBI has also revised the marginal cost of fund based lending rates (MCLR) by upto 0.20% from June 15. The one-year MCLR has been raised to 7.40% from 7.20%. The overnight to three-year tenor MCLRs have been raised to 7.05-7.70 per cent. Most of the consumer loans such as auto, home and personal loans come under MCLR.

SBI has also raised the repo linked lending rate (RLLR). The revised RLLR will be 7.15% plus credit risk premium (CRP), as against the present 6.65% plus CRP.

The RBI hiked the repo rate by 0.50% to 4.90% last week. Repo is the short term lending rate charged by RBI to the commercial banks.