E-Paper
SBI cuts select deposit rates, tweaks lending benchmarks after 25 bps reduction in policy rate
The decision comes after a 25 basis point cut in the policy rate, which led to lower yields on loans linked to external benchmarks.
State Bank of India (SBI) has lowered rates on select fixed deposits and revised its lending benchmarks, following the recent reduction in the policy rate. The revised rates will come into force from December 15.
The decision comes after a 25 basis point cut in the policy rate, which led to lower yields on loans linked to external benchmarks. This, in turn, reduced interest income for banks, prompting SBI to adjust both deposit and lending rates.
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As part of the changes, SBI has reduced the interest rate on its popular 444-day fixed deposit to 6.5 per cent from 6.6 per cent. The bank has also cut rates on deposits with tenures of two years to less than three years to 6.4 per cent from 6.5 per cent. For senior citizens, the rate on these deposits has been lowered to 6.9 per cent from 7.0 per cent.
The bank said the revisions were aimed at managing the impact of the policy rate cut while protecting its net interest margins.
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Rates on short-term deposits ranging from seven days to less than one year, as well as on long-term deposits of three years and above, have been left unchanged.
The move comes at a time when credit growth continues to outpace deposit growth. In late November, bank lending rose by 11.5 per cent year on year, the fastest pace since April 2025, while deposit growth remained comparatively slower.
