SBI Deposit Rates: SBI Raises Deposit Interest Rates; Effective February 15

State Bank of India has hiked its deposit interest rates. An increase of 10 basis points has been made in the Marginal Cost of Funds-based Lending Rate (MCLR) rates. It came into effect from today, February 15. Last week, the Reserve Bank had hiked repo rates by 25 basis points in its monetary policy review meeting. RBI has increased the rate by a total of 250 basis points from May 2022. This is with the intention of controlling inflation.

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Overnight MCLR rates are 7.95% as per SBI website. In one month, three MCLRs are at 8.10 levels. The six-month MCLR is 8.40 percent. One year MCLR is at 8.50%, two year and three year MCLR is at 8.60% and 8.70% respectively.

Interest rates on domestic retail term deposits have been increased from 5 to 25 bps. The interest rate is 6.80% for deposits up to Rs 2 crore for one year to less than two years. MCLR rates have been increased to 7% from two years to less than three years. Here an increase of 5 bps has been made. The rate of interest is 6.50% on deposits with a tenure of more than three years. It was earlier 6.25%.

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The bank’s credit growth has been steadily improving despite rising interest rates. In the fortnight ended January 27, 2023, credit showed a rise of 16.3%. This reflected the increase in retail demand and strong growth in NBFCs. If interest rates rise further, investment interest is likely to rise accordingly.