The State Bank of India (SBI) has announced a 25 basis point reduction in its lending rates, in response to the Reserve Bank of India’s (RBI) recent cut in the repo rate. This move will lower borrowing costs for new and existing customers and is expected to stimulate credit demand and support economic activity. As of April 15, 2025, SBI’s Repo Linked Lending Rate (RLLR) will stand at 8.25%, while the External Benchmark Based Lending Rate (EBLR) will be 8.65%, according to the bank’s updated data.
This decision follows the RBI’s second consecutive repo rate cut aimed at addressing global economic uncertainties and trade tensions, particularly with the U.S. SBI has also revised its fixed deposit (FD) interest rates, trimming them by 10 to 25 basis points. Deposits under Rs 3 crore for 1–2 years will now earn 6.70%, while 2–3 year terms offer 6.90%. For deposits above Rs 3 crore, interest rates range from 6.40% to 6.80% depending on the tenure.
Additionally, SBI’s green rupee term deposits for tenures of 1111, 1777, and 2222 days will yield 10 basis points less than standard rates. Its special 444-day ‘Amrit Vrishti’ FD scheme now offers 7.05%, with higher returns for senior citizens.
Other banks have mirrored this trend. HDFC Bank has dropped its savings account interest rate to 2.75% for most customers and 3.25% for balances above Rs 50 lakh. Bank of India has reduced its home loan interest to 7.9%, linked to customers’ credit scores, and also slashed rates across personal, auto, education, and mortgage loans. Furthermore, it has discontinued its 400-day special FD plan that previously offered 7.3%.
These coordinated changes reflect the broader easing trend in the banking sector, driven by the RBI’s policy stance to spur growth in a challenging global economic climate.
