SBI & IOB Cut Lending Rates After RBI’s Repo Rate Reduction

New Delhi, Dec 13 (KNN) State Bank of India (SBI) and Indian Overseas Bank (IOB) have lowered lending rates following the Reserve Bank of India’s recent reduction in the policy repo rate, passing on the benefit to borrowers ahead of the effective date of December 15, 2025.

SBI said its External Benchmark Linked Rate (EBLR) has been cut by 25 basis points to 7.90 per cent. IOB, in a similar move, reduced its Repo Linked Lending Rate (RLLR) by 25 basis points to 8.10 per cent from 8.35 per cent, fully transmitting the RBI’s latest policy easing.

The rate revisions follow the RBI’s decision last week to cut the repo rate by 25 basis points for the fourth time this year, aimed at supporting economic growth, reported PTI.

Changes in Lending Benchmarks

SBI has also reduced its Marginal Cost of Funds-Based Lending Rate (MCLR) by 5 basis points across all tenures. The one-year MCLR now stands at 8.70 per cent, down from 8.75 per cent. 

In addition, the bank has lowered its Base Rate/BPLR to 9.90 per cent from 10 per cent, with all revisions effective December 15.

IOB’s Asset Liability Management Committee has approved a 5-basis-point cut in MCLR across tenures ranging from three months to three years.

Deposit Rate Adjustments

On the deposit side, SBI announced a 5-basis-point reduction in fixed deposit rates for the two-year to less-than-three-year maturity bucket, bringing the rate down to 6.40 per cent. Deposit rates for other tenures remain unchanged.

The bank has also revised the interest rate on its special 444-day fixed deposit scheme, ‘Amrit Vrishti’, to 6.45 per cent from 6.60 per cent, effective December 15.

(KNN Bureau)