SBI cuts lending, retail deposit rates from Dec 15

New Delhi, December 13: State Bank of India (SBI) has introduced revised lending rates and adjusted select deposit schemes, implementing changes effective December 15. The updated rates will impact various financial products including loans and term deposits.

For fixed deposits spanning 2 to under 3 years, the interest rate has been lowered from 6.45% to 6.40%. Senior citizens will continue to receive an additional 50 basis points, bringing their revised rate to 6.90% instead of the previous 6.95%. All other retail deposit categories retain their existing rates, according to the bank’s official announcement.

These revisions apply to domestic retail deposits under ₹3 crore, along with adjustments to the Marginal Cost of Funds-based Lending Rate (MCLR), External Benchmark Linked Rate (EBLR), and Base Rate structures.

The special 444-day “Amrit Vrishti” deposit scheme now offers reduced returns at 6.45%, down from its previous rate of 6.60%.

Borrowing costs have been reduced across multiple segments, with MCLR rates decreased by 5 basis points for all tenors. Post-revision, overnight and one-month MCLR stands at 7.85%, while rates for longer durations show progressive increases up to 8.80% for three-year terms.

The bank’s External Benchmark Lending Rate now stands at 7.90%, reflecting a 25 basis point reduction from 8.15%. Similarly, the Base Rate for certain existing borrowers has been lowered to 9.90% from 10.00%.

This development follows recent government confirmation that public sector banks haven’t required capital infusion since FY23, demonstrating improved financial health and profit generation capabilities.

Separate analysis from SBI economists suggests recent GST reductions could lower CPI inflation by approximately 25 basis points during September-November 2025, with potential for greater fiscal year impacts.

–IANS