In a move that will directly impact your home loans, EMIs, and fixed deposits, major Indian banks have slashed both lending and deposit rates. This comes after the Reserve Bank of India cut its repo rate by 50 basis points in 2025, bringing it down to 6%. The central bank said retail inflation is now under control, expected to stay close to the 4% target.
Let’s look at what major banks have done following this rate cut:
HDFC Bank, India’s largest private sector lender, has revised its deposit rates for the first time in three years. Savings accounts with balances below ₹50 lakh will now fetch 2.75%, while those above ₹50 lakh will get 3.25%, effective April 12.
SBI, the country's biggest public sector bank, has cut fixed deposit rates for senior citizens. FDs maturing between one and two years will now yield 7.2%, down from 7.3%, and those between two and three years will offer 7.4%, instead of 7.5%, starting April 15.
Bank of India has also trimmed deposit rates. For amounts under ₹3 crore, deposits maturing in 91 to 179 days now offer 4.25%, and one-year FDs give 7.05%. Rates are slightly better for deposits above ₹3 crore, reaching up to 6.5% for select tenures.
Lending rates are also down. SBI has reduced its repo-linked lending rate to 8.25% and its external benchmark lending rate to 8.65%. Bank of Maharashtra followed suit, cutting its external benchmark rate to 8.65% as well.
This trend reflects a broader shift. With households now preferring mutual funds and other market-linked investments, banks are being forced to make deposit rates more competitive.
So whether you’re a borrower hoping for cheaper EMIs or a saver hunting for better returns — these changes matter.
