A day after the Reserve Bank of India announced a cut in bank rate, State Bank of India has reduced its prime lending rates and interest on domestic term deposits by 0.25 per cent across all maturities with effect from May 5.

The revised State Bank advance rate, State Bank medium-term lending rate (SBMTLR) and State Bank short-term advance rate (SBSTAR) would be 10.5 per cent, 11 per cent and 10 per cent, respectively, an SBI release said in Mumbai on Wednesday.

SBI said interest on domestic term deposits of 7-14 days duration would be four per cent per annum (4.25 per cent earlier), while for one year to less than two years it would be 5.5 per cent (5.75 per cent).

The rate in case of deposits of duration two years to less than three year has been revised to 5.75 per cent (6 per cent), and for three years and above interest has been pegged at 6 per cent (6.25 per cent).

SBI said senior citizens would continue to be offered a differential interest rate of 0.5 per cent over and above the rates offered for maturities of one year to less than two years -- 6 per cent, two years to less than three years -- 6.25 per cent and three years and above -- 6.5 per cent.

The rate of interest payable on non-resident external deposits would remain unchanged. The maturity period of fresh Non-Resident External deposits would be for one to three years in line with Foreign Currency Non-Resident (Bank) deposits, it added.

The revised rates would be applicable to all fresh domestic term, NRE deposits and renewals.