SBI reduces FD rates by 40 GB, RBI stops 7.75% bond sale

Must Read

MAH MCA CET 2020 Admit Card released, download here

NEW DELHI: MAH MCA CET 2020 Admit Card has been released on Wednesday i.e. October 21 by the State...

Kovid-19: Coronovirus epidemic among prominent statues, pandals, indulgence in Durga Puja celebrations – Yatra

It is that time of the year. The fragrance of 'Shiuli', the delicate orange and white flowers yet...

‘BJP should think why its foundations are being done’: Uddhav Thackeray on Khadse’s resignation – Mumbai News

Following the resignation of Eknath Khadse, Maharashtra Chief Minister Uddhav Thackeray slammed the Bharatiya Janata Party (BJP). Thackeray...

Let’s Start this Interesting Article Shared on DesiNew.xyz

Mumbai: State Bank of India (SBI) has reduced interest rates by 40 basis points (100bps = 1 percentage point) on most of its maturity deposits. After the modification, the highest return offered by the bank is 5.4% on the deposit amount in five years. On bulk deposits, SBI has reduced the returns by half a percent.
According to the bank’s website, it will now offer 2.9% on deposits for 45 days, 3.9% for 17 days, 4.4% for one year and 5.1% for three years. However, senior citizens will get half a percent more return on their deposits. The new rates are effective from Wednesday. With SBI reducing its deposit rates, most other public sector banks are expected to follow suit.
Those depositing more than Rs 2 crore with the bank will get only 3% for more than 2 years. Depositors under two years will receive 2.9% of all maturities. With Rs 1 lakh crore of surplus liquidity, the bank is giving negative returns on bulk deposits (after adjusting for inflation).
Meanwhile, the Reserve Bank of India has stated that it will close the sale of 7.75% Savings (Taxable) Bonds, 2018 with effect from the closure of banking business on Thursday – May 28, 2020. A government notification is followed on Wednesday to close it. Of the plan. These bonds, which are sold by banks to retail investors, have a tenure of 7 years, but can be encashed prematurely by senior citizens.
SBI’s cut in FD rates has been the same as the repo rate cut by the central bank last week. Since all retail loans are now linked to an external benchmark – the RBI repo rate – bank loans become cheaper by 40 GB on their next reset.
For corporate borrowers, the cost of the loan depends on a formula based on the marginal cost of the money-based lending rate (MCLR). Last week, SBI President Rajnish Kumar said that the MCLR would be reset in early June.

STAY TUNED WITH US FOR MORE INTERESTING CONTENT ONLY ON DESINEW.XYZ

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest News

MAH MCA CET 2020 Admit Card released, download here

NEW DELHI: MAH MCA CET 2020 Admit Card has been released on Wednesday i.e. October 21 by the State...

Kovid-19: Coronovirus epidemic among prominent statues, pandals, indulgence in Durga Puja celebrations – Yatra

It is that time of the year. The fragrance of 'Shiuli', the delicate orange and white flowers yet blooming, flock with the autumn...

‘BJP should think why its foundations are being done’: Uddhav Thackeray on Khadse’s resignation – Mumbai News

Following the resignation of Eknath Khadse, Maharashtra Chief Minister Uddhav Thackeray slammed the Bharatiya Janata Party (BJP). Thackeray said that BJP should think...

Thai protesters continue rallies, asking court to rescind order – world news

Student activists on Wednesday applied to a court that Thailand's government declared a state of emergency last week in an attempt to curb the...

US government sues Google: what is this antitrust case and how will it affect tech giants – world news

The US government's Department of Justice has filed a lawsuit against Google accusing the Google-owned company of illegally misusing its dominance in Internet search...
- Advertisement -

More Articles Like This

- Advertisement -