INDIA: SBI Raises Select Fixed Deposit Rates By 0.75%

MUMBAI (The Economic Times - PTI), November 1, 2007: India's largest lender State Bank of India today increased fixed deposit rates on select maturities in an effort seeking to safeguard its position against any possible liquidity crunch. On October 30, the Reserve Bank had increased by 50 basis points the proportion of deposits that banks have to keep in reserve to 7.5 per cent. The decision was expected to absorb Rs.16,000 crore from the banking system. As per the changes made by SBI, one year to 550 days fixed deposit would attract interest at 8.75 per cent as against 8 per cent paid earlier. For senior citizens, fixed deposits of this tenure would be paid interest at 9.25 per cent, an increase of 0.75 per cent, the SBI informed the Bombay Stock Exchange. The new rate of interest would come into effect from November 7, it added. Copyright © 2007 Times Internet Limited.