SBI Prunes Interest Rate By 25 Pbs

State Bank of India, the country''s largest bank, has reduced interest rates by a 25 basis point on fixed deposits for various slabs up to 550 days. But the bank has raised rates on two medium-term slabs. The revision in rates follows decision by the Federal Reserve to lower its key lending rates on Dec 11 from 4.50% to 4.25%. As per the revised rate structure, SBI will continue to offer a maximum rate of 8.5% for three to ten years. For one year to 549 days the bank will offer 8.25% against 8% and for 550 days the bank will offer 8.5% against 8.75%. The bank will offer a minimum rate of 4.75% for 45 days against 5%. The revised rates are effective from December 17. A number of banks have witnessed pressure on their margins in the second quarter. Analyst said that this was largely because deposits grew at a faster pace while credit growth was marginal.