Lending rates to fall by 30 bps after RBI policy cut: SBI Report

expects lending rates to fall by 30 basis points (bps) due to the recent policy rate cut, primarily impacting loans linked to the external benchmark lending rate (EBLR), which account for 60% of banks' loan books. The Cash Reserve Ratio (CRR) reduction may improve bank margins by 3-5 bps, while fixed deposit rates have already dropped by 30-70 bps since February 2025.