SBI cuts interest rates on NRE deposits by 0.50 percent

New Delhi, Sep 5 (IANS) State Bank of India (SBI), the country's largest lender, said Wednesday it will cut interest rates on fixed deposits on non-resident external rupee (NRE) and non-resident ordinary (NRO) accounts by 0.50 percent effective from Sep 7.

For the term deposits of 1 year to less than 5 year period the interest rate will be revised downward to 8.50 percent from the existing 9 percent.

"State Bank of India has decided to revise the interest rates on NRE/NRO deposits for the tenors of 1 year to less than 5 years to 8.50 percent per annum from 9 percent with effect from Sep 7, 2012," SBI said in a statement.