On July 31, the nation’s largest lender State Bank of India had cut interest rate on savings account deposits by 50 basis points to 3.5% on balance of Rs 1 crore and below.
After four days of State Bank of India cut the interest rate on savings bank account, one more public sector unit bank ‘Bank of Baroda’ has followed suit, cutting it to 3.5% on deposits of up to Rs 50 lakh.
A depletion in interest levels on savings banking records is not really something to happy about, but not for investors who hold shares in a bank that has declared a depletion. SBI shareholders became slightly higher on Monday as the inventory rose sharply after the bank declared a cut in attention rate on saving banking a/c to 3.5% from 4% on balance of Rs 1 crore or less. The SBI stocks, which did it well this month and outperformed the benchmark indices by a good margin gained.
The banking sector high weight announced on 31st July that it is presenting 2 tire saving bank interest rate. The balance more than Rs 1 crore will continue to get an interested rate at 4% per annum, while interest rate at 3.5% per annum shall be offered on balances of Rs 1 crore and below.
The bank said that the reduction in the amount of rising prices and high real rates warranted a modification in the attention on the rate of interest on saving bank deposits.
However, State bank of India persists to offer 4% interest on savings a/c balance of Rs 1 crore and above. More banks are likely to follow suit.