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SBI Clarifies on FD Rates After Repo Rate Hike by RBI
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News18•08-10-2026, 23:12
SBI Clarifies on FD Rates After Repo Rate Hike by RBI
- •The Reserve Bank of India has increased the repo rate by 0.25 percent to 5.50 percent.
- •SBI Chairman CS Setty stated that FD interest rates will not increase for the next two to three months due to adequate liquidity in the banking system.
- •Credit growth and inflation trends will determine whether banks need to raise deposit rates in the next two to three quarters.
- •Over 50 percent of loans in the banking system are currently linked to external benchmarks like the repo rate.
Key Questions Answered
The Reserve Bank of India's Monetary Policy Committee has increased the policy repo rate by 0.25 percent to reach 5.50 percent, alongside shifting its monetary stance to tightening.
No, State Bank of India (SBI) Chairman CS Setty has clarified that deposit rates are not expected to increase for the next two to three months due to adequate liquidity in the banking system.
More than 50 percent of loans in the banking system are based on external benchmark-linked rates, with the repo rate being the primary one.
