New Delhi, December 13 – The State Bank of India (SBI) announced that, starting on 15 December, it will cut a handful of its key lending benchmarks and a couple of term‑deposit rates.
The bank lowered the 2‑to‑3‑year retail deposit rate to 6.40 % (down from 6.45 %), adding a 50‑basis‑point bonus for senior citizens, which brings their rate to 6.90 % (from 6.95 %). All other retail deposit slabs remain unchanged. These adjustments affect domestic retail deposits under ₹3 crore, the Marginal Cost of Funds‑Based Lending Rate (MCLR), the External Benchmark Linked Rate (EBLR) and the Base Rate.
SBI also trimmed the 444‑day “Amrit Vrishti” deposit to 6.45 % (previously 6.60 %).
On the borrowing side, the bank reduced MCLR across all tenors by 5 basis points: overnight and one‑month to 7.85 %, three months to 8.25 %, six months to 8.60 %, one year to 8.70 %, two years to 8.75 %, and three years to 8.80 %.
The EBLR used to price many floating‑rate retail loans was cut by 25 basis points to 7.90 % (from 8.15 %). Meanwhile, the Base Rate for a small group of legacy borrowers was lowered to 9.90 % from 10.00 % on the same day.
Earlier this week, the government confirmed that it has not injected any capital into public‑sector banks since the 2022‑23 fiscal year because those institutions have significantly improved profitability and strengthened their capital buffers.
SBI’s report also notes that the recent GST cut is expected to reduce consumer price index inflation by roughly 25 basis points in the September–November 2025 window and could trim it by 35 basis points during FY 26.
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