State Bank of India Slashes Deposit Rates by 25-50 bps

The State Bank of India(SBI) slashes the deposit rate by 25-20 bps on the deposits for five years of term or more. The reduction in the deposit rate will is adverse for the depositors as they will get less on their deposited amounts. It is expected the cut in the deposit rate due to the current market and slow credit.

Financial sectors are guarding their liquidity considering the current market trends. For the second time the SBI declared cut in the deposit rates. Earlier, SBI had declared a cut of 25 bps on all the maturities. The cut in the deposit rates to be effective from November 9, 2009.

The State Bank of India has reportedly extended its special home loan scheme ‘My Home’ till March of next year. The scheme was launched in August 2009, the bank extended due to go good response to the scheme from the customers.