SBI, PNB hike deposit rates by up to 75 bps

State Bank of India (SBI) revised upwards deposit rates by 25-75 basis points (bps) across various maturities, effective from October 1. But, the country's largest bank left the base rate unchanged at 7.50% p.a. As per the RBI norms, banks have to review their base rates every quarter. This is the first quarterly review of the base rates since it was introduced in July this year. For 91-180 days term deposits, SBI has increased the interest rate by 75 bps to 5.5%. Fixed deposits with maturity period between 1 year and 554 days has been raised by 25 bps to 7%. Interest rate on deposits for 555 days would be 7.5%. Interest rate on term deposits of between 556 days and 1,000 days, under different slabs, has been increased by 50 bps, up to 7.75%, SBI said.



PNB said that taking note of the negative real rates to the savers, in view of high inflation, interest on fixed deposit have been increased by 25-50 bps across various maturities. The maximum rates offered by PNB now is 8% for deposits of maturity between 8 years and 10 years. For 1-3 years term deposits, the interest rate will be 7.5% interest, an increase of 25 bps. Fixed deposits with maturity of between 271 days to 1 year has been raised by 50 bps to 6%, while deposits of 5-8 years would be paid interest rate of 7.75%. PNB has decided to raise the base rate from 8.00% to 8.50% w.e.f. October 1, but the BPLR will remain intact at 11.75%. The base rate is the minimum lending rate below which bank cannot offer loans.