The State Bank of India, the country's largest lender, has lowered interest rates across the board by 25 basis points for deposits below Rs.1 crore, in what is seen as a precursor for rate cuts for the corporate sector.

For deposits for 15-45 days, the interest rate has been lowered to three percent, while for between eight and 10 years, it stands at eight percent, the state-run commercial bank announced Saturday.

The new rates take effect Monday.

The bank has also cut the interest rate for deposits of Rs.1 crore and above, but only for longer maturity. While for 271 days to one year, the rate stands revised from five percent at 4.5 percent, and that for above one year has been cut to five percent from 5.5 percent.

The announcement comes after Finance Minister Pranab Mukherjee nudged commercial banks to cut interest rates, saying it was necessary for the corporate sector to get credit at affordable prices to push India's overall economic growth.