SBI Slashes Lending Rates by 25 bps
The State Bank of India has announced to slash its Repo Linked Lending Rate (RLLR) by 25 basis points, bringing it down to 8.25%.
SBI Slashes Lending Rates by 25 bps
The State Bank of India has announced to slash its Repo Linked Lending Rate (RLLR) by 25 basis points, bringing it down to 8.25%. The change aligns with the Reserve Bank of India's decision (RBI) to cut the repo rate by 25 basis points. India's largest lender has also decided to lower its External Benchmark Based Lending Rate (EBLR) to 8.65%, effective from April 15, which is being done to offer more competitive lending rates to both new and existing borrowers.
Other banks have also followed the suit. For instance, Bank of India revised its repo-linked benchmark lending rate (RBLR) from 9.1% to 8.85% from April 9. “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.
The MCLR (Marginal Cost of Funds Based Lending) rate also remains unchanged. SBI’s one-year MCLR stands at 9%, while three-year MCLR remains at 9.10%.
Lending rates: Other banks
Punjab National Bank (PNB) reduced its RLLR from 9.1% to 8.85% on April 10. As per an exchange filing the bank said, “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.”
From April 11 Indian Bank also adjusted its repo benchmark rate and related lending rates. “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.”
HDFC Bank also slashed its savings account interest rate by 25 basis points to 2.75%, which is the lowest among its peers. Notably, reduction in interest rates will encourage people to borrow money, which in turn circulates money in the economy.
