Did SBI Reduce Lending and Deposit Rates Starting December 15?
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Synopsis
The State Bank of India is set to implement new lending and deposit rates effective December 15, offering senior citizens a premium rate. This decision aims to manage borrowing costs amid changing economic conditions. Read on to discover how these adjustments may impact your finances.
Key Takeaways
- SBI has cut key lending rates effective December 15.
- Senior citizens receive a premium on deposit rates.
- Changes impact loans for homes, autos, and MSMEs.
- Public sector banks show signs of improved financial performance.
- GST reduction expected to influence inflation rates.
New Delhi, Dec 13 (NationPress) The State Bank of India (SBI) has declared slight decreases in its primary lending benchmarks and certain term deposit rates, effective December 15.
The interest rate for deposits with tenors between 2 and less than 3 years has been lowered to 6.40% from 6.45%. Senior citizens will benefit from a 50 basis points premium, bringing their rate down to 6.90% from 6.95%. Other retail term deposit categories remain unchanged, according to a bank statement.
These adjustments impact domestic retail term deposits under Rs 3 crore, the Marginal Cost of Funds-based Lending Rate (MCLR), the External Benchmark Linked Rate (EBLR), and the Base Rate.
The popular 444-day “Amrit Vrishti” deposit rate has been reduced to 6.45% from 6.60%.
SBI has also lowered the borrowing costs for home, auto, and MSME loans by adjusting the MCLR rates downward by 5 basis points across all tenors.
The MCLR rates for overnight and one-month tenors are now 7.85%, three months at 8.25%, six months at 8.60%, one year at 8.70%, two years at 8.75%, and three years at 8.80%.
Moreover, the EBLR, which determines the pricing for many floating-rate retail loans, has been reduced by 25 basis points to 7.90% from 8.15%. The Base Rate or BPLR for a small group of legacy borrowers has been cut to 9.90% from 10.00%, effective the same day.
This week, the government stated that there has been no capital infusion from the government in public sector banks since the fiscal year 2022-23, as these banks have notably improved their financial performance, becoming profitable and enhancing their capital status.
Additionally, a reduction in the goods and services tax (GST) is anticipated to lower consumer price index (CPI) inflation by approximately 25 basis points during the September–November 2025 period and could lead to a 35 basis points reduction this fiscal year (FY26), as reported by SBI.
Point of View
I believe the recent announcements by the State Bank of India reflect their proactive approach in adjusting to the current economic landscape. This is a strategic move that could greatly benefit borrowers while providing clarity for depositors.
NationPress
13/12/2025
Frequently Asked Questions
What are the new deposit rates at SBI?
The new deposit rates for tenors between 2 and less than 3 years will be 6.40%, while senior citizens will receive 6.90%.
How will the rate cuts affect loan borrowers?
Borrowers will benefit from reduced borrowing costs as the MCLR rates have been lowered by 5 basis points across all tenors.
When will these new rates take effect?
The new rates will take effect from December 15.
Is there any impact on public sector banks' capital infusion?
There has been no capital infusion by the government in public sector banks since FY 2022-23, indicating improved financial health.
What is the expected impact of GST reduction on inflation?
The reduction in GST is expected to lower CPI inflation by approximately 25 basis points in the September–November 2025 period.
