Mumbai: National banking bellwether State Bank of India raised interest rates on deposits for the first time in five years as it prepares to raise the lending game after the government strengthened it with capital investment and the trauma of bad loans eased. SBI follows private sector lender Axis Bank which raised deposit rates marginally last month in the first indication of rates hardening in the system as economic activity accelerates.Rates for customers with deposits of more than Rs 1 crore and senior citizens would go up between 50 and 140 basis points. A basis point is 0.01 percentage point. The rates rise the sharpest for the 46 days to 210 days bucket by 140 basis points to 6.25 per cent from 4.85 per cent. The incremental credit till January 5 was at Rs 2.02 lakh crore, far outpacing the additional deposits of Rs 1.27 lakh crore.

Source: Economic Times January 30, 2018 11:59 UTC