SBI may raise rates to grab bonus money

In an effort to grab a share of the hefty Diwali bonus to employees in government and corporate sector, country's largest lender State Bank of India may raise the interest rate on term deposit rates in next few days.
"Bank may revise hike interest rate on term deposits only during festive season to get funds from people who will get bonus money. This is also will time build liquidity to manage rise in credit uptake from the third quarter" senior SBI official said. The asset liability committee would take a decision this week, official said but did not elaborate further. At present, bank has adequate liquidity to manage any immediate rise in demand for resources.The Statutory Liquidity Ratio( SLR) is about three-four per cent over minimum level 25 per cent of deposits prescribed by Reserve Bank of India, he added.(BS 29092010)