Mumbai, April 14 – Major Indian banks, including State Bank of India (SBI), HDFC Bank, and Bank of India, have reduced their lending and deposit rates following a 50-basis point cut in the Reserve Bank of India’s (RBI) repo rate, citing improved inflation outlook and policy direction.
The repo rate—the rate at which the RBI lends to commercial banks—now stands at 6%, down from 6.5% at the start of 2025, following two consecutive cuts. The central bank attributed the easing to retail inflation stabilizing near its target of 4%.
The country’s largest lender, SBI, revised fixed deposit (FD) interest rates for senior citizens. FDs maturing in one to two years will now earn 7.2%, down from 7.3%, while those with two to three-year tenures will fetch 7.4%, a reduction of 10 basis points. The changes will take effect on April 15, 2025, according to the bank’s website.
Private sector giant HDFC Bank trimmed its savings deposit rates by 25 basis points. Balances below ₹50 lakh will now earn 2.75%, while those above ₹50 lakh will accrue 3.25%, effective April 12. This marks the first revision in over three years, with previous rates at 3% and 3.5%, respectively.
Bank of India also revised its FD rates for deposits under ₹3 crore. Deposits maturing in 91–179 days will now earn 4.25%, while one-year deposits will offer 7.05%. Deposits between one and two years will earn 6.75%. For deposits between ₹3 crore and ₹10 crore, rates range between 5.75% and 6.5%, depending on tenure.
Lending rates have also been adjusted. SBI cut its repo rate-linked lending rate by 25 basis points to 8.25% and its external benchmark lending rate (EBLR) to 8.65%. Bank of Maharashtra followed suit, slashing its EBLR to 8.65%.
The revisions come amid concerns flagged by both the Finance Ministry and the RBI over a shift in household savings from traditional banking to market-based instruments such as mutual funds. Policymakers have emphasized the need to maintain competitiveness in deposit rates to ensure financial stability and adequate liquidity in the banking system.
