SBI cuts lending rates by 25 bps after some banks slash their loan and deposit interest rates

State Bank of India (SBI), the country's largest lender, has announced a reduction in its Repo Linked Lending Rate (RLLR) by 25 basis points, bringing it down to 8.25%. This change is aligned with the Reserve Bank of India's (RBI) recent decision to cut the repo rate by 25 basis points, a move aimed at fostering economic growth. Additionally, SBI has lowered its External Benchmark Based Lending Rate (EBLR) to 8.65%, effective from April 15, 2025, as part of its strategy to offer more competitive lending rates to both new and existing borrowers. The adjustments are reflected in the updated rate information available on SBI's website.

Following the RBI's directive, other banks have also adjusted their lending rates. The Bank of India, for instance, has revised its repo-linked benchmark lending rate (RBLR) from 9.1% to 8.85%, effective April 9, 2025. "Effective RBLR from 9.1% to 8.85%, a decrease of 25 bps. The new rates are effective from April 9, 2025," stated the bank. This is part of a broader strategy to enhance affordability for home loan borrowers amid the evolving monetary policy landscape.

The MCLR (Marginal Cost of Funds Based Lending) rate, which is the minimum interest rate that the bank can charge its customers, has not been altered. SBI's one-year MCLR remains at 9%, and its three-year MCLR remains at 9.10%. These rates will also come into effect from today, April 15, 2025.

Lending rates for other banks

Meanwhile, Punjab National Bank (PNB) has decreased its RLLR from 9.1% to 8.85% as of April 10, 2025. "The exchange is hereby informed that the bank (Punjab National Bank) has revised RLLR from 9.10% (including BSP of 20 bps) to 8.85% (including BSP of 20 bps) with effect from 10.04.2025. Further, there is no change in the existing MCLR and base rate," according to their BSE filing. These measures indicate PNB's commitment to passing on the benefits of RBI's policy changes to its customers.

Indian Bank has similarly adjusted its repo benchmark rate and related lending rates, effective from April 11, 2025, in line with the RBI's policy shift. "In terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we have to inform you that, in line with the decrease in REPO rate of 25 bps by the Monetary Policy Committee (MPC) of RBI, the bank has revised the REPO Benchmark Rate and Repo Linked Benchmark Lending Rates (RBLR). The revised rate as detailed below is effective from 11.04.2025 until the next review." Such adjustments are expected to improve borrowing affordability across the banking sector.

Additionally, private sector giant HDFC Bank has reduced its savings account interest rate by 25 basis points to 2.75%, making it one of the lowest among its peers. This broader reduction in rates across various banking sectors is expected to encourage borrowing by lowering lending costs, thereby contributing to economic stimulation. The repo rate, a pivotal tool in the RBI's monetary policy, significantly influences loan interest rates, subsequently impacting consumer affordability and spending patterns.