SBI lowers select deposit, lending rates

MUMBAI: State Bank of India has cut rates on select deposits and reduced lending benchmarks. The move follows the 25 bps reduction in policy rate. The revised rates come into effect from Dec 15. The bank has cut the rate on its 444-day deposit from 6.6% to 6.5%.

SBI has cut rates on select deposits and reduced lending benchmarks to pass on the repo cut while protecting its margins. The move follows the 25 basis points (100bps = 1 percentage point) reduction in the policy rate, which lowered yields on loans linked to the external benchmark and reduced the bank’s interest income.




The bank said it adjusted deposit rates to balance the impact on its net interest margin. It reduced the rate on the 444-day deposit to 6.5% from 6.6%. It also lowered the rate on deposits of two to less than three years to 6.4% from 6.5%, and to 6.9% from 7.0% for senior citizens. Rates on short-term deposits of seven days to less than one year and on long-term deposits of three years and above remain unchanged.

The deposit rate cut comes at a time whe bank credit growth continues to outstrip deposit growth in late Nov, with lending rising 11.5% year on year, the highest since April 2025, even as deposits expanded at a slower pace.

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