State Bank of India (SBI), on Thursday revised upwards its lending as well as deposit rates, as part of its efforts to deal with liquidity crunch.

The country’s largest state-owned lender announced that it had hiked Base Rate (the minimum rate of lending) and the Benchmark Prime Lending Rate by 10 basis points to 9.80 per cent and 14.55 per cent, respectively.

Retail term deposit rates (below Rs 1 crore) were hiked by 25 basis points to 100 basis points. Interest rate for deposits for 7-179 days was hiked from 6.50 per cent to 7.50 per cent per annum, with effect from September 19; while interest rate on deposits for 180-to 210 days was hiked from 6.50 per cent to 6.80 per cent per annum with effect from September 20.

Rate for deposits for 211 days to less than 1 year and for 1 year to up to 10 years were hiked from 6.50 per cent to 7.50 per cent and from 8.75 per cent to 9 per cent per annum.

Saraswathy Atmanathan, Chief GM (Asset Liability Management) at SBI, said, “The liquidity has been coming at a higher cost after the liquidity tightening measures announced by the Reserve Bank of India on July 15, and recently we increased the bulk deposit rates… today this increase, we extend to retail deposits also.”

On July 15, the Reserve bank of India (RBI) announced some measures, such as sucking out liquidity from the system and increasing rates of short-term funding, to arrest the fall of rupee.