SBI cuts FD rates again, business loans may get cheaper

MUMBAI: In a move that could impact millions of savers, the State Bank of India (SBI) has reduced fixed deposit (FD) rates by 20 basis points across all tenors. This change affects both the general public and senior citizens, who often rely on FDs for steady returns. The rate cut reflects the bank's strategy to align with the current economic environment and maintain competitive interest rates. The reduction in FD rates comes amidst a broader trend of declining interest rates in the banking sector. Experts suggest that this could be a response to excess liquidity and the need to spur economic growth. For depositors, this means recalibrating their investment strategies to adapt to the changing financial landscape, potentially exploring alternative investment options for better returns. On the brighter side, the rate cut is likely to result in cheaper business loans, offering relief to entrepreneurs and business owners. Lower borrowing costs could stimulate business activities and investments, contributing to economic recovery. This dual impact of reduced deposit rates and potentially cheaper loans illustrates the bank's balancing act in fostering growth while managing depositor expectations.

— Authored by Next24 Live