The State Bank of India (SBI), the country's largest public sector bank, has announced an increase in interest rates for fixed deposits (FDs) by 25 basis points (0.25%). This change, effective from March 15, 2026, is aimed at providing better returns to customers placing substantial deposits. However, it's important to note that this raised interest rate applies only to bulk deposits exceeding ₹3 crore; retail deposits below this threshold will not see any changes in their interest rates.

The revision in interest rates signifies SBI's efforts to attract more funds from higher net worth individuals and institutions, especially in a competitive banking environment. The bank has specified that the revised rates will apply to certain tenors, providing customers a clearer understanding of where they can benefit from these changes. Financial analysts view this move as an attempt to bolster SBI's market position, particularly as it competes with other banks that have also been adjusting their interest rates in response to policy changes and market conditions.

In summary, while this announcement is a positive update for larger depositors, it underscores the ongoing interest rate competition in the banking sector of India. Depositors with smaller amounts will need to look elsewhere if they seek higher returns, highlighting a growing disparity between retail and bulk deposit offerings.