This is the second such rate hike by SBI on deposits over Rs1 crore, usually referred to as bulk deposits, in two months. SBI’s bulk as well as retail term deposit rates range between 5.25% and 6.25%. “Our bulk deposit rates were sharply lower than the market post demonetisation. Since the share of bulk deposits in total deposits is low, cost of funds is not expected to rise sharply,” said P.K. This, along with an expected increase in loan demand, may lead to a rise in deposit rates, bankers said.

Source: Mint January 30, 2018 19:07 UTC