The State Bank of India has no immediate plans to cut the interest rate on deposits in the light of rising inflation, SBI Chairman A K Purwar said on Monday.
"The savings account rate is down to 3.5 per cent, while the inflation has grown to around 4.5 per cent and situation is not the same as what it used to be," Purwar said on the sidelines of seminar organised by international magazine BusinessWeek in Mumbai.
For any change (cut) in the interest rate, "We will have to conduct a detailed review," he said.
From January 13, the country's largest commercial bank had cut deposit rate by 0.25 per cent for longer end domestic deposits.
The deposits of maturities of one year to less than two years now stand at 5.75 per cent (6 per cent earlier).
On the budgetary announcement of the Centre buying back high cost government securities, Purwar said: "We would study the facility and if the tax incentives are good, SBI will like to participate in it."
The government has provided certain tax incentives to utilise proceeds of such buyback to make provision for non-performing assets.