Ever since the Reserve Bank of India’s (RBI) monetary policy committee on April 9 cut its repo rate by 25 basis points, a number of banks – mostly in the public sector – have slashed their repo linked lending rates (RLRR) on home loans. These banks which have reduced their RLRR are SBI, Bank of Maharashtra, Indian Bank and Punjab National Bank (PNB).
As mentioned, the cut is seen in the repo linked lending rate (RLRR). For those who are unaware, floating-rate home loans are typically linked to external benchmarks with effect from Oct 1, 2019, with the repo rate being the most common. Other benchmarks to which the floating-rate home loan can be linked are treasury bill yield and other benchmarks.
These banks have cut their lending rates
State Bank of India (SBI): SBI reduced the external benchmark linked loan rates (EBLR) by 25 bps to 8.65 per cent. The lender also reduced the repo linked lending rate (RLLR) by 25 bps to 8.25 per cent. The new rates came into force from April 15.
Bank of Maharashtra (BOM): The state lender has cut the repo linked lending rate (RLLR) by 25 basis points to 8.80 percent per annum.
Indian Bank: This state lender has cut the repo rate linked lending rate (RLLR) by 35 basis points from 9.05 to 8.7 percent per annum. These rates came into force with effect from April 11, 2025.
Punjab National Bank: This state lender has also reduced its repo linked lending rate by 25 basis points from 9.10 percent to 8.85 percent per annum. The new rate came into force from April 10, 2025.
Some banks have, meanwhile, cut interest on savings and fixed deposits (FDs) as well. For instance, State Bank of India (SBI) has cut interest rate on fixed deposits (FDs) across two tenures by 10 basis points.
HDFC Bank has, meanwhile, cut the interest rate on savings accounts by 25 basis points from 3 percent to 2.75 percent per annum. This came into effect on April 12 i.e., three days after the repo rate cut. However, for deposits above ₹50 lakh, the interest rate is 3.25 percent.
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