State Bank of Travancore (SBT) has revised downwards the interest rates for domestic/NRO (non-resident ordinary) term deposits across various maturities.
This is a prelude to cutting down lending rates ‘as early as in next 15 days,' a top official told Business Line on Wednesday.
“Basically, we have been just lucky to find that our liquidity is quite comfortable to venture out in this manner,” the official said. The surprise cut in repo was a bonus.
The bank has chosen to ‘go the distance' when others are only talking about a deposit rate cut.
The base rate too will be reviewed very soon.
“The only thing here is that we need to comply with RBI prescriptions to zero in on cost of funds. It will take slightly longer.”
Meanwhile, the rate applicable for the 15 to 45-day bucket alone has been spared from any downward revision of deposit rates announced by the bank.
For 46-90 days, the deposit rate is 7 per cent (8.50 earlier); 91-179 days, 7 per cent (8.50); 180 days to less than one year, 8 per cent (8.75); one year to less than two years, 9 per cent (9.50); 500 days, 9 per cent (9.50); two years to less than three years, 9 per cent (9.50); 1000 days, 9 per cent (9.50).
The revised rates are effective from Thursday, an official spokesman said earlier in the day.
The new deposit rates are applicable to all domestic/NRO term deposits of less than Rs 1 crore only.