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10mo ago

SBI Cuts Key Lending Benchmarks After RBI Easing, Trims Select Deposit Rates From Dec. 15

The changes follow the RBI’s December rate cut, signaling cautious pass-through to borrowers with limited deposit repricing.

The revised rates will come into force from December 15.
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Overview

  • SBI lowered its External Benchmark Linked Rate by 25 basis points to 7.90%, effective December 15, fully reflecting the policy-rate reduction.
  • SBI reduced MCLR across all tenors by 5 basis points, taking the one-year MCLR to 8.70%, and cut the Base Rate/BPLR to 9.90% for legacy borrowers.
  • Selective deposit changes include a cut to 6.40% for the 2–under-3-year tenor and to 6.45% for the 444-day Amrit Vrishti scheme, with most other slabs unchanged.
  • The revisions are expected to ease EMIs and borrowing costs for retail, MSME and corporate customers whose loans reset to the revised benchmarks.
  • Indian Overseas Bank also reduced its repo-linked lending rate by 25 basis points to 8.10% from December 15, as banks weigh transmission against slower deposit growth.