The largest lender of the country, State Bank of India has decided to focus on bulk deposits. The decision to move its focus towards such large size deposits has been due to the tight liquidity conditions and the bank's estimates of surging loan demand.

The last fiscal had ample liquidity in the economy which enabled the banking major to repay off half of its bulk deposits.

The bank is now offering a premium on deposits of Rs 50 crore and above. The bank would pay an interest of 6.5% for deposits of Rs 50 crore for a tenor of one year and above.

The bank has said that it would be accepting deposits of Rs 1 crore and above for varied maturities at interest rates in the range of 1.50-6%.

"Currently, we have no problem with liquidity and we have huge cash surplus," a bank official said.