SBI slashes lending and deposit rates after RBI’s 50 bps rate cut
Mumbai: India’s largest public sector bank, State Bank of India (SBI), has cut its lending rates by 50 basis points, passing on the benefits of the Reserve Bank of India’s (RBI) policy easing to borrowers, according to a PTI report.
With effect from June 15, 2025, SBI’s Repo Linked Lending Rate (RLLR) now stands at 7.75%, while its External Benchmark Based Lending Rate (EBLR) has been reduced to 8.15% from the earlier 8.65%, according to the updated data on the bank’s website.
The move follows the RBI’s June 6 decision to slash the benchmark repo rate by 50 basis points to 5.5%, in a bid to revive economic growth, which has slipped to a four-year low of 6.5% in FY25.
RBI's aggressive easing prompts widespread bank response
The monetary policy committee, chaired by Governor Sanjay Malhotra, voted 5:1 in favour of the repo rate cut.
It also reduced the cash reserve ratio (CRR) by 100 basis points to 3%, a move that is expected to infuse ₹2.5 lakh crore into the banking system by the end of 2025. Most banks have already begun reducing lending rates, and others are expected to follow suit soon.
Deposit rates lowered by up to 25 bps across tenors
In tandem with the lending rate cut, SBI has also trimmed interest rates on fixed deposits up to ₹3 crore by 25 basis points across all tenures. The new deposit rates are also effective from June 15.
- Interest on 1-2 year deposits is now 6.50%, down from 6.75%.
- Deposits maturing in 2 to less than 3 years will earn 6.45%, compared to 6.70% earlier.
- For tenures of 3-5 years, the rate stands reduced to 6.30%.
- Long-term deposits of 5-10 years will now attract 6.05%, down from 6.30%.
- The ‘444-day’ Amrit Vrishti scheme has also seen a rate revision, with interest lowered from 6.85% to 6.60%.
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