Overview

• The Reserve Bank of India reduced its repo rate to 6% on April 9, 2025, prompting widespread rate adjustments by banks.
• State Bank of India cut its lending rates by 25 basis points, lowering its Repo Linked Lending Rate to 8.25%, and reduced fixed deposit rates by 10-25 basis points.
• Bank of India also reduced lending rates by 25 basis points, with home loans now starting at 7.90%, and revised fixed deposit rates while withdrawing its 400-day special deposit scheme.
• Public sector banks, including Punjab National Bank and Bank of Baroda, have also reduced repo-linked lending rates by 25 basis points, mirroring SBI and BOI's actions.
• Private sector banks have trimmed savings account rates, with public sector banks offering rates as low as 2.7%, signaling a broader shift to a low-interest rate regime aimed at stimulating economic growth.