SBI hikes deposit rates by 15-20 bps | Rare Techy

The increase comes after two hikes in the benchmark repo rate by the Reserve Bank of India (RBI) in the May and June meetings of the monetary policy committee to curb inflationary pressures. SBI last hiked deposit rates in February, data available on its website showed.

On Tuesday, SBI raised rates on deposits by 20 bps to 4.6% per annum for a period of 211 days less than 1 year. Deposits between 1 year and less than 2 years will also be 20 bps higher, at 5.3%. Those in the 2 years to less than 3 years category will yield 15 bps more at 5.35%. One basis point is 0.01%.

Public deposits were in the banking system ₹165.7 trillion on May 20, a growth of 9.3% compared to last year, said CareEdge Ratings. In absolute terms, bank deposits have increased ₹14.1 trillion in the last 12 months.

“The banking system has maintained an increase in liquidity since June 2019 due to the increase in deposits due to the high growth of bank deposits against credit disbursements, except for the last two weeks,” the report said on June 13.