SBI cuts short-term deposit rates to 6% State Bank of India has reduced the short-term deposit rates by 1 percentage point for amount below Rs 1 crore, second such move this month. In an exchange filing on Tuesday, the banking giant said it has reduced the pricing of short-term deposits of below Rs 1 crore to 6 percent from 7 percent now for a maturity of 7 to 45 days.
The new pricing will be effective October 7, said the lender, which controls close to a quarter of the total liabilities in the banking system. The bank has retained the existing rates for all other maturities in this bucket.
On September 16, the nation’s largest lender had cut the interest rate on medium-term deposits (one year to less than three years maturity) by 25 basis points to 8.75 percent and by 25 bps the medium-term deposit in the 180-210 days category to 7.25 percent.
From a quarterly perspective this is the third time that the bank has revised deposit rates. In July too, it had reduced the interest rate on fixed deposits of up to 179 days by 0.50 percentage point (50 bps) and on bulk deposits by 25 bps. The bank has been witnessing deposits growth at a healthy rate of 13-14 per cent but credit expansion remained tepid at 7 percent.
SBI stock price On October 01, 2014, at 13:20 hrs State Bank of India was quoting at Rs 2428.00, down Rs 14.35, or 0.59 percent. The 52-week high of the share was Rs 2833.85 and the 52-week low was Rs 1455.95. The company’s trailing 12-month (TTM) EPS was at Rs 147.33 per share as per the quarter ended June 2014.
The stock’s price-to-earnings (P/E) ratio was 16.48. The latest book value of the company is Rs 1584.34 per share. At current value, the price-to-book value of the company is 1.5.
–PTI