India's largest lender, the State Bank of India (SBI) has increased interest rates on fixed deposits. The new rates will be effective from February 15, 2022.

As per the bank's website, for fixed deposits having tenor of 2 years to less than 3 years, interest rates have been raised by 10 basis points to 5.20%.

The interest rate for FDs with tenor ranging from 3 years to less than 5 years has been hiked from 5.3% to 5.45% -- an increase of 15 basis points.

For FD tenor of 5 years and up to 10 years, the interest rate has been increased by 10 basis points to 5.50%, the state-run lender's website showed.

The new interest rates have been revised for retail domestic term deposits below ₹2 crore.

The interest rates on FDs of tenure below 2 years remain unchanged. SBI had hiked the interest rates on FDs below ₹2 crore with a tenure of 1 year to less than 2 years by 10 basis points in January 2022.

The bank also extended its deposit scheme for senior citizens up to September 30, 2022. Under the scheme, it offers an additional premium of 30 basis points (over & above the existing 50 bps) to senior citizens on their retail term deposits for five years and above.

The interest rate payable to SBI Staff and SBI pensioners will be 1% above the applicable rate.

The proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits, the lender said.

The state-run lender reported 62.3% year-on-year (YoY) growth in its net profit at ₹8,432 crore for the third quarter ended December 31, 2021, aided by gains in the personal retail segment, home loans, Xpress credit and other loans. The bank had posted a net profit of ₹5,196 crore in Q3FY21 and ₹7,627 crore in Q2FY22, the PSU bank.

The total income of the bank rose by 3.1% to ₹78,351 crore in Q3 FY22, as against ₹75,981 crore in the same period last year.

Net interest income, the difference between interest earned and interest paid, climbed 6.5% to ₹30,687 crore, from ₹28,820 crore in the corresponding period of the previous fiscal. The net interest margin improved to 6 basis points to 3.4% as compared to 3.34% in the same period last year.

During the quarter under review, the lender earned interest income of Rs 69,678 crore, up 4.41% from Rs 66,734 crore in the same quarter last year.

Last month, private lenders ICICI Bank and Axis Bank had revised interest rates on fixed deposits

SBI fixed deposit rates

Good news for depositors! SBI hikes interest rates on FDs