SBI, HDFC, Bank of India shares rise on passing RBI rate cut benefit to borrowers

The RBI Monetary Policy Committee (MPC) voted unanimously last week to slash the repurchase or repo rate by 25 basis points (bps) to 6%.

SBI reduces interest rate by 25 bps

SBI shares were trading 2.07% higher at ₹769.45 apiece on the National Stock Exchange (NSE) at 10:00 am after the public sector bank reduced its lending rate by 25 bps, making loans cheaper for new and existing borrowers.

With the latest cut, the SBI's Repo Linked Lending Rate (RLLR) came down to 8.25%.

It also slashed the External Benchmark Based Lending Rate, or EBLR, by 25 bps to 8.65%. The revised rates would be effective from April 15, 2025.

Furthermore, the bank decreased deposit rates by 10-25 bps. With the revision, the interest rate on fixed deposits (FDs) up to 3 crore for 1-2 year term deposits will be 6.7%, a decline of 10 bps. Deposits with two to three years maturity will fetch 6.9% interest, compared to 7% earlier.

FDs above ₹3 crore maturing in 180 days to 210 days will get 6.40% interest (-20 bps), while for 211 days to less than 365 days, it was reduced by 25 bps to 6.50%.

HDFC Bank cuts savings account interest rates by 25 bps

This comes after the bank lowered savings accounts interest rate by 25 bps to 2.75%.

For balances more than ₹50 lakh, the rate is 3.25%, compared to 3.5%.

Bank of India share price cuts home loan interest rates

The bank also cut interest rates by 25 bps across select existing retail loan products, such as vehicle loans, loans against property, personal loans, and education loans.

The stock was trading 1.66% higher at ₹109.96 apiece on the NSE.