Daijiworld Media Network - New Delhi

New Delhi, Dec 13: State Bank of India (SBI) on Friday announced modest cuts in select deposit rates and key lending benchmarks, with the revised rates set to take effect from December 15.

Under the changes, the interest rate for retail term deposits with a tenure of two to less than three years has been lowered to 6.40 per cent from 6.45 per cent. Senior citizens, who receive an additional 50 basis points over the regular rate, will now earn 6.90 per cent, down from 6.95 per cent. SBI said all other retail term deposit rates will remain unchanged. These revisions apply to domestic retail deposits below Rs 3 crore.

The bank has also reduced the rate on its popular 444-day “Amrit Vrishti” fixed deposit to 6.45 per cent from the earlier 6.60 per cent.

On the lending side, SBI eased borrowing costs by cutting its Marginal Cost of Funds-based Lending Rate (MCLR) across all tenors by 5 basis points, a move that will benefit customers with home, auto, and MSME loans. Following the revision, the overnight and one-month MCLR stands at 7.85 per cent, the three-month rate at 8.25 per cent, the six-month rate at 8.60 per cent, the one-year rate at 8.70 per cent, the two-year rate at 8.75 per cent, and the three-year rate at 8.80 per cent.

In addition, the External Benchmark Linked Rate (EBLR), which is used for pricing many floating-rate retail loans, has been reduced by 25 basis points to 7.90 per cent from 8.15 per cent. The Base Rate or BPLR, applicable to a limited set of legacy borrowers, has also been cut to 9.90 per cent from 10.00 per cent, effective December 15.

Earlier in the week, the government informed Parliament that it has not infused capital into public sector banks since FY 2022–23, citing improved profitability and stronger capital positions across these lenders.

Separately, SBI said in a recent report that a reduction in goods and services tax (GST) is expected to ease inflationary pressures. The bank estimated that the move could lower consumer price index (CPI) inflation by around 25 basis points during the September–November 2025 period and by about 35 basis points over the course of the current financial year (FY26).