Janjivan Bureau / New Delhi : Country’s largest lender State Bank of India, on Monday cut intrest rate on savings bank accounts.
Accounts with a balance of 10 million rupees ($155,994.07) and less will earn 3.5 percent per annum effective July 31, while those above 10 million rupees will continue to earn 4 percent per annum, the bank said in a statement.
About 90 percent of SBI’s savings accounts have balances under 10 million rupees.
“The decline in rate of inflation and high real interest rates are the primary considerations warranting a revision,” SBI said.
The revision would enable the bank to maintain its Marginal Cost of funds-based Lending Rate (MCLR) at existing rates, the lender added.
The bank’s overnight MCLR rate, effective July 1, currently stands at 7.75 percent.
Shares of the bank spiked after the announcement, climbing as much as 4.75 percent.
