After the RBI lowered the repo rate, major banks reduced lending and deposit rates.
The biggest lender in India The biggest private sector bank, HDFC Bank, and State Bank of India reduced their deposit interest rates by 25 basis points.
After the Reserve Bank of India (RBI) lowered the repo rate by 50 basis points in 2025, major banks lowered their lending and deposit rates.
HDFC Bank, the biggest bank in the private sector, lowered its interest rates for deposits by 25 basis points. One hundredth of a percentage is called a basis point.
With effect from April 12, 2025, HDFC Bank declared that savings deposits for accounts with balances under ₹50 lakh would accrue 2.75% and those with balances over ₹50 lakh would accrue 3.25%. For the first time in around three years, when the equivalent rates were 3% and 3.5%, the interest rates are moving.
SBI lowered the interest rates on its senior citizen fixed deposits. The combined interest rate for fixed deposits (FDs) with maturities ranging from one to three years will now be 20 basis points. According to SBI's website, FDs with a one to two-year term will now yield 7.2% instead of 7.3%, and those with a two to three-year tenure will now accrue an interest rate of 7.4% instead of 7.5%, as of April 15, 2025.
Bank of India is currently offering 4.25% for deposits maturing between 91 and 179 days, and it has lowered its FD interest rates for amounts under ₹3 crore. For 180-day to less than one-year deposits, a rate of 5.75% is offered. Interest rates on deposits made for a year would be 7.05%, while those made for more than a year and up to two years would be 6.75%.
According to a statement, the bank will offer 5.75% interest for funds maturing between 91 and 179 days, 6.25% for deposits between 180 and 210 days, and 6.50% for deposits between 211 and less than a year for deposits in the bucket of ₹3 crore to less than ₹10 crore.
Banks also reduced their lending rates. State Bank of India, Bank of Maharashtra among others also cut their lending rates. SBI cut repo rate linked lending rates by 25 basis points to 8.25% and external benchmark lending rates to 8.65%. Bank of Maharashtra too announced to cut external benchmark rates to 8.65%.
The cut in both deposit and lending interest rates comes days after the RBI announced a 25-basis point cut in repo rate, the rate at which commercial banks borrow from the central bank. The repo rate at the beginning of the calendar year was 6.5%. After two consecutive cuts, the rates are now at 6%, and the RBI has cited that the retail inflation is well within the target area of 4% and the March inflation is expected to be in line with the target rate.
The change in interest rates comes at a time when the Finance Ministry and the RBI had flagged that households were moving to market-based investing and saving instruments such as mutual funds and were not preferring banks.
After the Reserve Bank of India (RBI) lowered the repo rate by 50 basis points in 2025, major banks lowered their lending and deposit rates.
HDFC Bank, the biggest bank in the private sector, lowered its interest rates for deposits by 25 basis points. One hundredth of a percentage is called a basis point.
With effect from April 12, 2025, HDFC Bank declared that savings deposits for accounts with balances under ₹50 lakh would accrue 2.75% and those with balances over ₹50 lakh would accrue 3.25%. For the first time in around three years, when the equivalent rates were 3% and 3.5%, the interest rates are moving.
SBI lowered the interest rates on its senior citizen fixed deposits. The combined interest rate for fixed deposits (FDs) with maturities ranging from one to three years will now be 20 basis points. According to SBI's website, FDs with a one to two-year term will now yield 7.2% instead of 7.3%, and those with a two to three-year tenure will now accrue an interest rate of 7.4% instead of 7.5%, as of April 15, 2025.
Bank of India is currently offering 4.25% for deposits maturing between 91 and 179 days, and it has lowered its FD interest rates for amounts under ₹3 crore. For 180-day to less than one-year deposits, a rate of 5.75% is offered. Interest rates on deposits made for a year would be 7.05%, while those made for more than a year and up to two years would be 6.75%.
According to a statement, the bank will offer 5.75% interest for funds maturing between 91 and 179 days, 6.25% for deposits between 180 and 210 days, and 6.50% for deposits between 211 and less than a year for deposits in the bucket of ₹3 crore to less than ₹10 crore.
Banks also reduced their lending rates. State Bank of India, Bank of Maharashtra among others also cut their lending rates. SBI cut repo rate linked lending rates by 25 basis points to 8.25% and external benchmark lending rates to 8.65%. Bank of Maharashtra too announced to cut external benchmark rates to 8.65%.
The cut in both deposit and lending interest rates comes days after the RBI announced a 25-basis point cut in repo rate, the rate at which commercial banks borrow from the central bank. The repo rate at the beginning of the calendar year was 6.5%. After two consecutive cuts, the rates are now at 6%, and the RBI has cited that the retail inflation is well within the target area of 4% and the March inflation is expected to be in line with the target rate.
The change in interest rates comes at a time when the Finance Ministry and the RBI had flagged that households were moving to market-based investing and saving instruments such as mutual funds and were not preferring banks.
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