State Bank of India (SBI) has cut interest rates on domestic bulk term deposits (₹3 crore and above) in four out of nine tenors by 25 basis points (bps) with effect from May 15, 2026.
However, India’s largest bank left interest rates on retail domestic term deposit (below ₹3 crore) unchanged.
Following the cut, the new interest rates on bulk TDs in the 46 days to 179 days tenor is 5.10 per cent (5.35 per cent earlier).
The revised interest rate on bulk TDs in both the 180 days to 210 days and 211 days, to less than one year maturity buckets, is 5.60 per cent (5.85 per cent).
In demand
The new interest rate on bulk TD in the 1 year to less than 2 years tenor is 6.25 per cent (6.50 per cent). Among all the tenors, bulk TD in the one year to less than 2-year tenor is currently earning the highest interest rate. Interest rates on the remaining five tenors remain unchanged.
India’s largest bank said premature penalty for bulk term deposits for all tenors will be one per cent. It will be applicable for all new deposits including renewals.
Banking expert V Viswanathan said, “Retail deposit accretion is fairly good in all banks due to the volatile stock market. So, it is not wise to touch retail deposit rates.
“Normally, liquid mutual funds place bulk deposits at the short-end, not exceeding 45 days. So, the bank has not changed interest rates on those buckets.”
Reducing interest rates on bulk TDs in select maturity buckets can help in improving the net interest margin without affecting the flow, which is more on the retail side, he added.
Published on May 15, 2026