The SBI reduced interest rate on deposits across all maturities with effect from August 1. SBI cut retail term deposit rate by up to 20 bps and bulk deposit rate by up to 35 bps. The bank also slashed interest rates by 50-75 bps for time deposits with shorter tenors. Prashant Kumar, CFO of SBI, says the current liquidity situation in the system is quite comfortable. He expects further reduction in MCLR going forward and adds interest rates are not the only factor affecting credit growth.