SBI passes RBI rate cut benefit to borrowers, Pg15

Key Highlights:

• SBI reduced its lending rate by 25 basis points following the RBI’s policy rate cut.
• The revised External Benchmark Linked Rate (EBLR) of SBI will decrease to 7.90 percent.
• The new rates are effective from December 16, 2025.

Detailed Insights:

• RBI's policy rate cut prompted SBI to lower its lending rates, benefiting both existing and new loan applicants.
• The reduction in EBLR aims to stimulate borrowing and boost economic activity by lowering the cost of funds.
• SBI maintained interest rates on other maturity buckets, reflecting challenges in deposit mobilization and managing costs.

Key Concepts Involved:

• Lending Rate: The interest rate at which a bank lends money.
• RBI Policy Rate: The rate at which the Reserve Bank of India lends money to commercial banks.
• External Benchmark Linked Rate (EBLR): A lending rate linked to an external benchmark, like the RBI's repo rate.