The State Bank of India (SBI), the country’s largest public sector lender, has announced a 50 basis points cut in its External Benchmark Lending Rate (EBLR), aligning with the Reserve Bank of India’s recent policy rate reduction. The revised EBLR now stands at 8.15%, down from 8.65%, effective June 15, 2025.
Consequently, SBI’s home loan interest rates — which are linked to the EBLR — have also been revised. Depending on the borrower’s credit score, the new home loan rates will range between 7.5% and 8.45%, according to the bank’s official website.
In a move affecting depositors, SBI has also lowered the interest rate for its special deposit scheme ‘Amrit Vrishti’ (444 days) by 25 basis points, bringing it down from 6.85% to 6.60%, also effective from June 15.
“We have passed the entire repo rate cut on to our borrowers,” a senior SBI executive confirmed.
The EBLR is a key benchmark that includes the repo rate, Credit Risk Premium, and Business Strategy Premium, impacting pricing of retail and corporate loans.
On the deposit side, while interest rates for the Amrit Vrishti scheme have been revised, the card rates for domestic retail term deposits below ₹3 crore remain unchanged for now. The bank had previously trimmed term deposit rates across maturities by 20 bps last month and is still reviewing further adjustments.
Meanwhile, rating agency CareEdge noted that deposit mobilisation remains competitive, especially for low-cost Current Account Savings Account (CASA) deposits. The reduction in deposit rates may lower the cost of funds for banks over the next two to three quarters but is also likely to compress net interest margins (NIMs) by 20–25 basis points in FY26, given the expected sharper fall in yield on advances compared to deposit costs.
This rate revision by SBI could offer relief to borrowers while slightly tightening the margins for the bank in a softening interest rate environment.
