State Bank of India (SBI), the country’s largest lender, has indicated that sharp cuts in deposit rates are unlikely in the near future. This comes after the bank recently reduced certain fixed deposit rates following the Reserve Bank of India’s policy rate cut. While loans have become cheaper for borrowers, depositors are closely watching for further changes. SBI Chairman CS Setty said there is some scope for adjustment, but aggressive rate reductions are not expected.

Earlier this month, SBI lowered its fixed deposit rate by 5 basis points for deposits with maturities ranging from two years to less than three years. The revised rate now stands at 6.40 percent, effective December 15. Rates on other maturity buckets were left unchanged, indicating continued pressure on deposit mobilisation. This selective revision reflects a cautious approach amid changing liquidity conditions.

The bank also revised the interest rate on its popular special tenor scheme, ‘Amrit Vrishti’, which has a maturity of 444 days. The rate was reduced from 6.60 percent to 6.45 percent, effective December 15. This move aligns with the broader trend of marginal easing in interest rates. However, SBI has avoided widespread cuts to protect its deposit base.

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On the lending side, SBI has reduced its Marginal Cost of Funds-Based Lending Rate (MCLR) by 5 basis points across all tenures. Following the revision, the one-year MCLR now stands at 8.70 percent, down from 8.75 percent. The bank has also lowered its Base Rate and Benchmark Prime Lending Rate (BPLR) to 9.90 percent. These changes are expected to benefit both existing and new borrowers.

During the interaction, Chairman CS Setty also spoke about SBI’s capital position and future plans. He confirmed that the initial public offering of SBI Mutual Fund is likely to be completed within the next 12 months. He added that there are no immediate plans for other IPOs or stake sales. Importantly, he stated that SBI will not require fresh capital for the next five years, having already raised ₹25,000 crore through a qualified institutional placement this year.

Commenting on global trade concerns and tariffs, Setty said it is still too early to assess their full impact on exporters. So far, SBI has not seen any significant stress across its loan portfolios. He attributed this resilience to exporters diversifying their markets geographically. However, he cautioned that the real impact, if any, may become clearer in the next quarter.

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