The Hindu : SBI cuts PLR, domestic deposit rates

Online edition of India's National Newspaper
Thursday, May 01, 2003

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SBI cuts PLR, domestic deposit rates

By Our Special Correspondent

MUMBAI APRIL 30. State Bank of India, premier bank of the country, revised downwards its Prime Lending Rate (PLR) and interest rates offered on domestic term deposits by 25 basis points.

Speaking to The Hindu on its interest rate cut, here, today, the SBI Chairman, A. K. Purwar, said, "Consequent to the announcement of 25 basis point cut in Bank Rate and Cash Reserve Ratio (CRR) in the annual Monetary and Credit Policy, there should be realignment of interest rates in the market.''

With effective from May 5, SBI has revised its PLR by 0.25 percentage points — State Bank Advance Rate (SBAR) from 10.75 per annum to 10.50 per cent per annum, State Bank Medium Term Lending Rate (SBMTLR) from 11.25 per cent to 11 per cent and State Bank Short Term Advance Rate (SBSTAR) from 10.25 per cent to 10.25 per cent per annum to 10 per cent per annum.

The interest rates payable on domestic term deposit rates have also been revised downwards by 0.25 percentage points across the board with effect from May 5. For 7 to 14 days (Rs. 15 lakhs and above only) the interest rate has been reduced from 4.25 per cent to 4 per cent per annum, between 15 days and 45 days 4.50 per cent to 4.25 per cent, 46 days to 179 days 5.25 per cent to 5 per cent, 180 days to less than one year 5.50 per cent to 5.25 per cent, one year to less than two years 5.75 per cent to 5.50 per cent, two years to less than three years 6 per cent to 5.75 per cent and three years and above 6.25 per cent to 6 per cent per annum.

The senior citizens will continue to be offered a differential interest rate of 0.50 percentage points over and above the rates offered for the maturities of one year to less than two years (6 per cent per annum), two years to less than three years (6.25 per cent per annum) and three years and above (6.50 per cent per annum), stated a press release issued here today by SBI.

The rates of interest payable on NRE deposits would remain unchanged. The maturity period of fresh NRE deposits will be for one to three years and in line with the FCNR (B) deposits. SBI further stated that the revised interest rates are applicable to all fresh domestic term deposits, NRE deposit accounts and renewals.

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