State Bank of India (SBI), the largest public sector lender, today launched an online facility for Overdraft against Fixed Deposit. Customers holding Fixed Deposits in a single name can now avail of up to 90% of the FD amount as an overdraft to meet emergency and other needs, the bank said.

"As an introductory offer, SBI is charging an interest rate of only 0.5% more than the linked FD. This is among the lowest in the industry," the bank said. "While the core product has been available at SBI branches for a while now, the online facility is part of SBI's constant endeavor to take products and services onto the digital platform. The OD is created instantly without the need to visit the branch."

This facility is now available to all Internet Banking users of the bank through the OnlineSBI portal. "In the coming days, it will also be extended to the State Bank Anywhere mobile App," it added.

Shares of the bank declined Rs 0.45, or 0.16%, to settle at Rs 288.30. The total volume of shares traded was 1,814,565 at the BSE (Tuesday).