MUMBAI: State Bank of India has cut interest rates on select deposits and lowered credit benchmarks. This step follows the reduction of the policy interest rate by 25 basis points. The revised rates are effective from December 15. The bank has reduced the interest on its 444-day deposit from 6.6% to 6.5%.SBI has cut interest rates on select deposits and lowered credit benchmarks to implement repo cuts while protecting margins. This move follows the cut in the policy rate by 25 basis points (100 basis points = 1 percentage point), which reduced interest rates on loans linked to the external benchmark and reduced the bank’s interest income.
The bank said it has adjusted deposit rates to offset the impact on net interest margin. It lowered the rate on the 444-day deposit from 6.6% to 6.5%. The interest rate on deposits with a term of two to less than three years was also reduced from 6.5% to 6.4%, and for seniors to 6.9% from 7.0%. Rates for short-term deposits of seven days to less than one year and for long-term deposits of three years and longer remain unchanged.The deposit rate cut comes at a time when bank credit growth is still outpacing deposit growth at the end of November, with lending rising 11.5% year on year, the most since April 2025, even as deposits rose at a slower pace.
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