sbi interest rates: SBI hikes base rate, interest rates of certain FDs: Check details

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The largest public sector bank in India, the State Bank of India (SBI), has increased base rate by 0.10 percent or 10 basis points (bps), according to its website. The new rate will be effective from today, December 15, 2021.

Earlier, in September, the bank lowered the base rate by 5 basis points, to 7.45 percent.

The Reserve Bank of India sets the minimum rate of interest, which all banks use as their standard rate. Banks are not allowed to lend at a rate lower than the central bank’s predetermined base rate.

SBI also hiked the interest of fixed deposits above Rs 2 crore, with effect from December 15, 2021.

The revised interest rates will apply to new deposits as well as renewals of maturing deposits. NRO term deposit interest rates will be matched with domestic term deposit interest rates. These interest rates will also apply to domestic term deposits held by cooperative banks, according to SBI website.


The interest rates of FDs below Rs 2 crore have been kept unchanged by SBI.

Table of 2 crore and below


Here is a look at the other lending rates of SBI as per its website.

External Benchmark based Lending Rate (EBLR)

According to SBI, External Benchmark based Lending Rate (EBLR) = External Benchmark Rate (EBR) + Credit Risk Premium (CRP)

EBR (w.e.f 01-10-2021) is 6.65%; EBLR = 6.65% + CRP

RLLR(w.ef 01.10.2021) would be 6.25.



On December 8, 2021, the RBI announced its decision to maintain status quo on rates. The repo rate and reverse repo rate are currently at 4% and 3.35 percent, respectively. The RBI has kept key interest rates unchanged for the ninth consecutive monetary policy review meeting. The current repo rate of 4% is the lowest since April of 2001.

All borrowers who had taken floating rate home loans between July 2010 and March 2016 and did not shift their loans till now to other regimen like MCLR or external benchmark rate (EBR) will be impacted from SBI’s base rate hike. Base rate being the minimum interest rate at which a bank could lend to its customers who have their loans still under the base rate regime. As a result, the overall interest rate of these old borrowers with floating rate loans like home loans will go up due to which they will either pay increased EMIs or will have their loan tenure extended.

This interest rate hike is unlikely to remain limited to base rate only as we may soon see other benchmark rates like MCLR and EBR being hiked as well. SBI being the market leader, other banks are likely to follow suit and raise their lending rates in coming days. Beside being a reference rate for the borrowers the base rate also works as an indicator of direction of overall interest rate in the economy. A rise in base rate indicates that the falling interest rate trend is finally reversing and going forward we may see a few more hikes in interest rates which is good news for fixed deposit investors who have been getting one of lowest returns in the last 2 decades.

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