SBI cuts interest rate on savings account deposits

The State Bank of India has cut down interest rates on savings account deposits to 3.5% from the current 4%. Customers with less than Rs 1 crore deposits in savings account will lose out 0.5% interest.

SBI is expected to save around Rs 3,700 crore on Savings Bank Interest Rate keeping in mind the March numbers.

The interest rate revision is expected to enable SBI to maintain key lending rate at the existing rates. Analysts believe that interest rate cut will benefit a large segment of retail borrowers in SME, agriculture and affordable housing segments.

"The decline in the rate of inflation and high real interest rates are the primary considerations warranting a revision in the rate of interest on savings bank deposits," said a statement from SBI.