Ample liquidity and a lack of lending opportunities have prompted State Bank of India (SBI) to trim deposit rates for its retail customers with more banks expected to follow suit. SBI on Tuesday trimmed the interest rate on term deposits with a maturity of between one and three years by 25 basis points to 8.75%, a move that might encourage others to do the same given loan growth has tapered off to four-year lows of 11%. With consumer inflation just a shade below 8% and down from its peaks of 12%, banks, it would appear, are less apprehensive of deposits not coming in.

Source - http://www.financialexpress.com