Banks slash deposit, lending rates after RBI's repo cut

Banks have started lowering deposit rates after sitting on the fence for months, waiting for the liquidity to be in surplus and credit growth to ebb.

- Gopika Gopakumar & Anshika Kayastha

MUMBAI:

With both conditions now met, banks have taken the cue from the Reserve Bank of India's (RBI) repo rate cut of 25 basis points (bps) last week. While the liquidity surplus stood at ₹2.08 lakh crore on 10 April, non-food credit growth slowed to 10.9% year-on-year (y-o-y) as of March end, almost half of what it was a year earlier.

State Bank of India has reduced its lending rate by 25 basis points following the Reserve Bank's policy rate cut, making loans cheaper for both existing and new borrowers.