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State Bank of India cuts deposit rates

State Bank of India, the nation's largest commercial bank reduced its deposit rates late on Tuesday following the central bank's announcement of a bank rate cut. The bank said it would also consider cuts in its lending rates later.

"We have cut deposit rates by up to 50 basis points across all maturities," State Bank of India chairman Janki Ballabh told Reuters.

"The cuts are to realign with the prevailing market rates and lending rates are also likely to fall further."

The changes were made after India's central bank reduced the bank rate, its benchmark rate signal, by 25 basis points to 6.25 per cent, earlier in the day.

Before the reduction, government-owned SBI paid interest at varying rates depending on the maturity, with a maximum of 7.5 per cent.

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