SBI to link saving deposits, loan pricing to repo rate from May 1

SBI is the first lender to announce a timeline to switch to an external benchmark

State Bank of India (SBI), the country’s largest bank, will use the Reserve Bank of India’s (RBI’s) policy repo rate as a benchmark to set the savings deposit rates and those for short-term loans from May 1 this year.

It is the first bank to announce a timeline to switch to an external benchmark. The bank’s decision to link its key pricing decisions on savings bank deposits and short-term loans to the repo rate will help it to address rigidities in the balance sheet and ensure a quick transmission of changes in the RBI’s policy rates, SBI said in a