State Bank of Bikaner and Jaipur (SBBJ) on Monday announced it has reduced interest rates on deposits of various maturities with effect form August 10.
Banks are reducing interest rates on deposits following the Reserve Bank hiking cash reserve ratio – proportion of deposits to be parked with the central bank – by 0.5 per cent hike to 7 per cent during July 31 review of the Monetary Policy.
SBBJ has slashed rate of fixed deposits for 91-179 days by 25 basis points to 6 per cent, while those for 180 days to one year deposit would attract 7 per cent interest from earlier 7.5 per cent, the bank informed Bombay Stock Exchange.
One-year fixed deposit rate has been cut by 50 basis points at 8.25 per cent from the earlier level of 8.75 per cent, it said.
The 550-day deposit would attract 9.25 per cent interest as compared with 9.5 per cent earlier. For fixed deposit with maturity of 2-10 years, the rates have been cut by 25 basis points at 8.5 per cent.
However, for 1-2 year term deposits, the bank has effected a 25 basis point increase in the rate at 8.5 per cent, it added. Other major banks, which have cut deposit rates are State Bank of India, Bank of India, Bank of Baroda, ICICI Bank and Centurion Bank of Punjab (CBoP) as reported on Sify.