SBI increases short-term retail FD rates

SIGNALLING better returns for depositors, going forward, country's largest lender State Bank of India has increased the pricing on short-term retail fixed deposits (FDs) by 25-75 basis points, taking the peak offering to 6.25%, a move other banks also likely to follow amidst rising credit demand and falling liquidity.

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This is the first interest rate hike on deposits since December last by the bank that controls over a fifth of the system wide funds and liabilities, when it had jacked up the prices by up to 65 bps.