SBI and Other Banks Slash Lending Rates Post RBI Cut

Several major banks, including SBI, have reduced their lending and deposit rates following an RBI policy rate cut. The new rates will make loans cheaper for borrowers, while deposit rates see a slight decline. The changes come amid RBI's efforts to stimulate growth against external economic pressures.

The State Bank of India (SBI), the nation's largest lender, has announced a significant reduction in lending rates following a policy rate cut by the Reserve Bank of India. This move effectively makes loans more affordable for current and new customers, as SBI drops its Repo Linked Lending Rate by 25 basis points to 8.25%.

Accompanying this change, the bank has also adjusted its External Benchmark Based Lending Rate to 8.65%, with the new rates taking effect on April 15, 2025. These adjustments come after the RBI's strategic decision to lower key interest rates by 25 basis points in an effort to bolster economic growth amidst potential international trade conflicts.

Moreover, the bank has implemented a 10-25 basis point reduction in deposit rates, impacting both short-term and long-term deposits. Concurrently, HDFC Bank and Bank of India have also announced rate reductions, with home loans from Bank of India now more affordable based on CIBIL scores.

(With inputs from agencies.)