State Bank of India (SBI) today announced a 25 basis points reduction in deposit rates across maturities as part of its latest attempt to lower cost of funds and improve its net interest margin The latest revision, effective from Monday, is the sixth deposit rate reduction by the bank during the current financial year. This does not include the bank's move to terminate its blockbuster 1,000-day scheme that helped it mop up over Rs 1,000 crore a day during the peak of the financial crisis.

In a statement, SBI said that it would offer 6.25 per cent on one-two year deposits, while the peak rate of 7.50 per cent would be available for 8-10 year funds. Since April, the peak rate has dropped by 100 basis points.
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