State Bank of India (SBI), the country’s largest lender, has revised its key lending benchmarks and retail term deposit rates with effect from 15 December 2025, signalling a marginal softening in borrowing costs and selective adjustments in deposit yields.
Retail Term Deposits:
On the deposits front, SBI has trimmed the return on its popular 444-day ‘Amrit Vrishti’ special tenor scheme. The rate has been revised from 6.60% to 6.45%, reflecting a 15-basis-point cut. Other tenors remain largely unchanged for both general and senior citizen customers.
For public depositors, interest rates range from 3.05% for 7–45 days to 6.05% for tenors up to 10 years, with no revisions except in the 2–3 year bucket, where the rate has been reduced from 6.45% to 6.40%. Senior citizens continue to enjoy a 50-basis-point premium, with long-term deposits of 5–10 years offering 7.05%.
MCLR Cuts Across Tenors:
SBI has reduced its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 bps across all major tenors. The overnight and one-month MCLR now stand at 7.85%, while the six-month and one-year benchmarks have been cut to 8.60% and 8.70%, respectively. These reductions are expected to bring modest relief to borrowers with MCLR-linked loans.
Base Rate Revision:
The bank has also reduced its Base Rate from 10.00% to 9.90%, effective December 15. This benefits a smaller pool of legacy borrowers still linked to the older benchmark.
The revision in these key benchmarks reflects SBI’s ongoing realignment with evolving funding costs and liquidity conditions in the banking system. While borrowers stand to benefit from lower lending rates, depositors—especially those opting for medium-term deposits—may see slightly moderated returns.
