SBI reduces interest rates by up to 50 bps after RBI rate action

Shares of State Bank of India (SBI) surged 0.38% to an intra-day high of ₹795.40 apiece on the National Stock Exchange (NSE) on Monday, June 16. This comes on the back of the bank reducing its lending rate by 50 basis points following the Reserve Bank's policy rate cut, making loans cheaper for both existing and new borrowers.

With the latest round of reduction, the Repo Linked Lending Rate (RLLR) of the country's biggest lender, SBI, would come down by 50 basis points to 7.75%.

It has also reduced the External Benchmark Based Lending Rate (EBLR) by a similar basis points to 8.15% from 8.65% earlier.

The revised rates came into effect on June 15, 2025, according to updated rate information on SBI's website.

The rate reduction is in response to the June 6 RBI jumbo rate cut by 50 basis points to support growth, which hit a four-year low of 6.5% in FY25.

The RBI's six-member monetary policy committee, headed by Governor Sanjay Malhotra and consisting of three external members, voted five to one to lower the benchmark repurchase or repo rate by 50 basis points to 5.5%.

It also cut the cash reserve ratio by 100 basis points to 3%, adding ₹2.5 lakh crore to already surplus liquidity in the banking system by December this year.

Following the RBI action, most of the banks have slashed lending rate remaining will follow suit soon.

Besides, SBI also cut deposit rates by 25 basis points across all maturities for fixed deposits up to ₹3 crore. The new term deposit rates are effective from June 15.

With the revision, for fixed deposits, the interest rate on 1-2 year term deposits will be lower by 25 basis points to 6.50%, and deposits having two years to less than 3 years maturity will attract 6.45% as against 6.70%.

In case of fixed deposits with maturity 3-5 years, interest rate has been reduced by 25 basis points to 6.30%, while for 5-10 years by 25 basis points to 6.05%.

The interest rate of a specific tenor scheme of '444 days' (Amrit Vrishti) has also been revised from 6.85% to 6.60%, effective from June 15, 2025.

Senior citizens are offered an additional 50 bps, while super senior citizens are eligible for an additional 60 basis points over the card rate.

SBI stock performance

At the time of writing, SBI shares were trading 0.28% higher at ₹794.6 apiece.

The share declined 2.55% over the past week and 2.12% on a month-to-date basis. While the stock has gained 3.01% so far into Q1FY26, it has lost 0.08 since the beggining of the year.

According to the data available on the NSE, SBI has a total market capitalisation of ₹7.09 lakh crore, as of June 16, 2025.