Lending rates have also eased, with the MCLR cut by 5 bps across all tenors, bringing the one-year MCLR to 8.70 per cent.
| Photo Credit:
NIHARIKA KULKARNI/Reuters
With the RBI’s 25-basis-point reduction in the policy repo rate, State Bank of India (SBI) has decided to selectively pare deposit rates. It will also snip the marginal cost of funds-based lending rate (MCLR) across the board.
India’s largest bank will pare term deposit rate in the 2-year to less than 3-year maturity bucket by 5 basis points (bps) from 6.45 per cent to 6.40 per cent, leaving interest rates in other maturity buckets unchanged.
Further, India’s largest bank has cut the interest rate of the specific tenor scheme of “444 days” — Amrit Vrishti by 15 bps from 6.60% to 6.45%.
The aforementioned rate revisions are effective from 15 Dec 2025.
SBI has also pared the marginal cost of funds-based lending rate (MCLR) by 5 bps across the board. With this revision, the one-year MCLR will be 8.70 per cent against the extant 8.75 per cent.
The External Benchmark Linked Rate (EBLR), which automatically gets revised whenever the repo rate is revised, has been cut from 8.15 per cent to 7.90 per cent. All retail and MSME loans are priced against EBLR.
Published on December 12, 2025
