In many baskets, the revised interest rates from India’s largest bank by market share of deposits and loans are lower than the interest rates offered on savings bank accounts, which are currently set at a minimum 4 per cent.
Following the report, the stock rose 1.6 per cent to hit a high of Rs 262.90 on BSE.
A rise in deposits has lowered the blended cost of funds for lenders. SBI, meanwhile, said it would try to protect net interest margins (NIMs). It was carefully and cautiously looking at deposit rates, the lender said.
The move has come in the wake of the government’s recent move on banning Rs 500 and Rs 1,000 notes has led to Rs 5.4 lakh crore coming into banking sector as banks deposit. State Bank alone received Rs 1.5 lakh crore as deposits.