Mumbai: A day after lowering the deposits for small savers (under Rs 10 crore in savings deposits by 5 bps to 2.70 per cent per annum, the nation’s largest lender State Bank of India (SBI) on Tuesday increased the savings deposit rates by 30 bps for large accounts.
The bank said the new pricing of 30 bps more on deposits, is applicable for Rs 10 crore and above, and is effective from October 15.
Banks have been witnessing flight of money to other asset classes even as they were lending more. For many months, deposit growth has not been keeping pace with credit growth which in the first half averaged at 14.8 per cent while deposits have been much lower at 9.5 per cent only.
In the past many years, deposits have been growing in high single digits but credit has been negative or in low single digit. For many months, deposit growth has not been keeping pace with credit growth which in the first half averaged at 14.8 per cent while deposits have been much lower at 9.5 per cent only.
While interest rates for saving bank deposits below Rs 10 crore remains unchanged at 2.70 percent, down 5 bps, those Rs 10 crore or above will attract 30 bps more at 3 per cent, SBI said. As of June 2022, the bank has a deposit base of over Rs 40.46 lakh crore with the Casa ratio of 45.33 and advances of over Rs 29 lakh crore.
