Greater Growth
State Bank of India Chairman Arundhati Bhattacharya has recently announced the bank’s decision to cut the interest rate on savings accounts. For accounts with deposits of `1 crore or less, the interest rate has come down to 3.5 per cent per annum while accounts with a balance of `1 croreplus will continue to earn 4 per cent interest per annum. “Large amounts of low-cost deposits consequent to demonetisation have either flown out or converted to higher-cost fixed deposits. This was done on the back of increasing real interest rates and inflation outlook,” Bhattacharya said explaining the move.