RBI Repo Rate Cut Impact: HDFC Bank, Canara Bank, Bank of India and other banks reduce interest rates on loans and FDs

Several banks like HDFC Bank, Bank of India (BOI), Canara Bank, State Bank of India (SBI) have reduced interest rates on loans and fixed deposits (FDs) after the Reserve Bank of India (RBI) cut the repo rate by 25 basis points to 6 per cent.

This will make loans cheaper for new as well as existing borrowers.

Bank of India (BOI) cuts lending rate

Add Zee Business as a Preferred Source

To make home loans more accessible and affordable, Bank of India (BOI) lowered their interest rates by 25 basis points with effective from April 15, 2025. According to the borrower's CIBIL score, the adjusted rate for house loans is now 7.90 per cent.

Bank of India FD rate
91 to 179 days: 4.25 per cent from 4.50 per cent
180 days to <1 year: 5.75 per cent from 6 per cent
1 to 2 years: 6.75 per cent from 6.80 per cent

BOI has also cancelled its 400-day FD scheme. The interest rate on that was 7.30 per cent.

Other banks' lending rates

Canara bank- 0.20 per cent
HDFC Bank- 0.35-0.40 per cent
Kotak mahindra- 0.15 per cent
Yes Bank- 0.25 per cent

Bank of Maharashtra reduced the repo rate-linked rate from 9.05 per cent to 8.8 per cent.

HDFC Bank FD rate cut

2 years 11 months: Cut by 35 basis points
4 years 7 months: Cut by 40 basis points

Yes Bank

Yes Bank has cut FD rates by 25 bps on FDs for 12- 24 months tenure

Canara Bank

The PSU bank has cut rates by 20 bps for the 444-day FD plan.

RBI repo rate cut

Last Wednesday, April 9, the Reserve Bank of India (RBI), on expected lines amid growth concerns in the wake of trade tariff turmoil, unanimously voted to slash the key policy repo rate by 25 bps to 6 per cent. The repo rate is the interest rate at which the central bank lends money to commercial banks in the country.

Also on anticipated lines, policymakers unanimously voted to change the stance to 'accommodative' from the previous 'neutral'.