Major banks cut lending, deposit rates following RBI’s repo rate cut

The largest lender in the country Banco State in India (SBI) and the Bank of India have reduced loan rates after the policy rate cut of the Bank of the Reserve of India (RBI). | Photo credit: Reuters

The main banks have reduced their loan and deposits rates after the 50 basic points of the 50 basic points cut at the repo rate in 2025.

The largest private sector Bank HDFC Bank reduced its deposit interest rates at 25 basic points. A basic point is a hundredth of a percentage.

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HDFC Bank announced that the savings deposit for accounts with a balance of less than ₹ 50 Lakh will age the 2.75% acrystation and above ₹ 50 LAKH will age 3.25% as of April 12, 2025.

SBI reduced his fixed deposit interest rates for older people. Interest rates for FDS (fixed deposits) that mature between one and three years will now be 20 basic points collectively. FDS with possession between one and two years will now produce 7.2% of 7.3% and those between two and three holdings will now accumulate an interest rate or 7.4% of 7.5%, according to the SBI website, in force of April 15, 2025.

Bank of India reduced its FD interest rates for an amount of less than ₹ 3 million rupees and now offers 4.25% for deposits that mature between 91 days and 179 days. There is a rate of 5.75% for 180 days less than a year of deposits. The deposits for one year would obtain an interest rate or 7.05%, while those over 1 year up to 2 years would obtain 6.75%. Deposits in the cube of ₹ 3 million rupees less than ₹ 10 million rupees, the bank will offer 5.75% for funds that mature between 91 days and 179 days, an interest rate of 6.25% is sacrificed for 180 days up to 211 days of time and 650% during the cough days and 650% for the days of cough and 6.50% of the coughs and 6.50 days coughing

Banks also reduced their loan rates. State Bank of India, Banco de Maharashtra, among others, also reduced its loan rates. Loan rates linked to the SBI reducing repo rate at 25 basic points to 8.25% and reference loans external to 8.65%. The Maharashtra bank also announced to reduce reference rates external to 8.65%.

The cut in deposit and loan interest rates occurs days after the RBI announced a 25 -point cut in the repo rate, the rate at which commercial banks borrow the Central Bank. The repo rate at the beginning of the calendar year was 6.5%. After two consecutive cuts, the rates are now 6%, and the RBI has cited that retail inflation is within the target or 4% area and March inflation is expected to be in line with the target rate.

The change in interest rates comes at a time when the Ministry of Finance and the RBI had marked that households were moving to market -based investment and savings instruments as mutual funds and did not prefer banks.