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SBI cuts bulk term deposit rates
TrendWatcher AI (Enhanced)·106d ago·neutral
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SBI reduces bulk term deposit rates by 25 bps, new rates range from 5.10% to 6.25%, check details and impact on depositors
- State Bank of India (SBI) has cut interest rates on domestic bulk term deposits (₹3 crore and above) in four out of nine tenors by 25 basis points (bps) with effect from May 15, 2026, while leaving interest rates on retail domestic term deposit (below ₹3 crore) unchanged [1]. This move is expected to impact large depositors and the bank's net interest margin.
| At a glance | |
|---|---|
| New interest rate (46 days to 179 days) | 5.10% |
| New interest rate (1 year to less than 2 years) | 6.25% |
| Reduction in interest rate | 25 bps |
| Effective date | May 15, 2026 |
What drove the move
The reduction in bulk term deposit rates is likely aimed at improving the net interest margin without affecting the flow of retail deposits, which have been fairly good due to the volatile stock market [1]. Banking expert V Viswanathan noted that reducing interest rates on bulk term deposits in select maturity buckets can help achieve this goal [1]. SBI has also revised its lending rates in the past, including a reduction of up to 25 bps after the RBI's policy easing [3].
The competitive picture
SBI's decision to cut bulk term deposit rates may be seen in the context of the overall banking industry, where lenders are adjusting their rates in response to changes in the monetary policy and market conditions. The bank has also updated its term deposit rates for specific tenures, including a reduction in interest rates for deposits under ₹3 crore with a tenure of two to three years [4]. The new interest rates range from 3.05% to 6.45% for the general public and 3.55% to 6.95% for senior citizens [6].
What to watch
- The impact of the reduced bulk term deposit rates on SBI's net interest margin and profitability
- The response of other banks to SBI's move and potential changes in their deposit rates
- The effect of the reduced deposit rates on the overall banking industry and the economy
The reduction in bulk term deposit rates by SBI may have significant implications for large depositors and the banking industry as a whole. As the largest bank in India, SBI's decisions can influence the overall direction of the banking sector. The move to cut bulk term deposit rates may be seen as a strategic step to improve the bank's net interest margin and competitiveness in the market.
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Synthesized from 6 sources
- 01SBI cuts bulk term deposits rates in four tenors by 25 bps - The HinduBusinessLineThehindubusinessline
- 02Retail Domestic term deposits - Interest Rates - SBI BankSbi
- 03SBI cuts lending rates by up to 25 bps after RBI policy easing - CNBC TV18Cnbctv18
- 04SBI revises term deposit rates, reduces lending rates — check details | MintLivemint
- 05Deposit Rates - Interest Rates - SBI BankSbi
- 06SBI Fixed Deposit - Latest SBI FD Interest Rates - February 2026Paisabazaar
AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 6 outlets · Jun 23, 2026 · How we report
Published
May 15, 2026, 01:48 PM
Author
BL Mumbai Bureau
Source
TrendWatcher AI (Enhanced)
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