State Bank of India (SBI) has cut the interest rate on savings bank (SB) deposits across all account balances to 2.50 per cent in the backdrop of surplus liquidity in the banking system, the 100 basis points cut in the repo rate since February 2025 and the 100 basis points cash reserve ratio cut, which will kick-in in four stages from September.

The cut, which is likely to prompt other banks to follow suit, is with effect from June 14th. So far, India’s largest bank was paying customers 2.70 per cent interest on SB balances below ₹10 crore and 3 per cent on balances of ₹10 crore and above.

Simultaneously, SBI has cut interest rates on retail domestic term deposits/ TDs (below ₹3 crore) by 25 basis points across the board with effect from June 15th.

With the latest retail TD cut, the highest interest rate the Bank is offering is 6.45 per cent (6.70 per cent earlier) on TD of two years to less than three years tenor.

The interest rate of specific tenor scheme of “Amrit Vrishti” (444 days)has also been revised from 6.85 per cent to 6.60 per cent with effect from June 15th.

The interest rates on domestic bulk TDs (₹3 crore and above) has been cut 25-50 basis points in various tenors with effect from June 15th.

With the latest bulk TD cut, the highest interest rate the Bank is offering is 6.25 per cent (6.50 per cent earlier) on TD of one year to less than two years tenor.

Lending rate benchmarks

Following the 50 basis points cut in the repo rate, the Bank’s new external benchmark rate (EBR) will be 8.15 per cent (against 8.65 per cent earlier).

Consequently, the external benchmark lending rate (EBLR), to which retail and MSME loans are linked, will be 8.15 per cent (against 8.65 per cent earlier) + credit risk premium (CRP) + business strategy premium (BSP).

Further, the repo linked lending rate (RLLR) is down to 7.75 per cent plus credit risk premium/CRP (against 8.25 per cent plus CRP earlier).

The marginal cost of funds-based lending rate (MCLR) has been left unchanged.

Published on June 16, 2025