SBI to pay more for deposits; holds base rate

Date: 01-10-2010

State Bank of India has hiked interest rates on domestic term deposits by 25 to 75 basis points across various maturity buckets. While SBI has decided to hold its base rate at 7.50 per cent ‘for the present,' Punjab National Bank (PNB), IDBI Bank and Allahabad Bank have increased their base rates from 8 per cent to 8.50 per cent. Axis Bank too upped its base rate by 25 basis points to 7.75 per cent.

PNB and IDBI Bank have upped term deposit rates by 25-50 basis points and 15-50 basis points respectively across various maturities. Over the next few days, other banks are also expected to increase interest rates on term deposits and the base rate.

The latest hike in term deposit rates by SBI comes nearly a month-and-a-half after the public sector bank raised term deposit rates by 25 to 150 basis points across various maturity buckets. The bank had then also notched up the benchmark prime lending rate by 50 basis points to 12.25 per cent.crack crack