SBI and IDBI Bank join trend, raise their interest rates on deposits

Interest rates on retail term deposits (below Rs 2 crore) of 211 days to less than one-year tenor have been increased by 20 bps to 4.6 per cent. It was 4.4 per cent earlier

The country’s largest lender, State Bank of India (SBI), has hiked interest rates on retail term deposits by 15-20 basis points (bps) on some tenors, with effect from June 14. Simultaneously, it has also raised interest rates on bulk term deposits by 50-75 bps.

Private sector lender IDBI Bank also hiked interest rate on retail term deposit of less than Rs 2 crore by 10 - 25 bps depending upon the tenor, with effect from June 15. 

The hike in deposit rates follows the rate action by the monetary policy committee (MPC) in the June meeting. This time, the benchmark policy rate