SBI slashes domestic term deposit rates by 20 basis points across tenors

The State Bank of India (SBI), the country's largest public sector lender, has announced a reduction in its domestic term deposit rates by 20 basis points (bps) across various tenors. This decision by SBI reflects the current liquidity surplus that is prevailing in the Indian banking system. When banks have ample funds, they tend to lower the interest rates offered on deposits as they have less need for additional funds. This move by SBI could potentially influence other banks to also adjust their deposit rates in response to the overall liquidity conditions in the market.