India, Dec. 13 -- State Bank of India (SBI) has lowered rates on select fixed deposits and revised its lending benchmarks, following the recent reduction in the policy rate. The revised rates will come into force from December 15.

The decision comes after a 25 basis point cut in the policy rate, which led to lower yields on loans linked to external benchmarks. This, in turn, reduced interest income for banks, prompting SBI to adjust both deposit and lending rates, TOI reported.

As part of the changes, SBI has reduced the interest rate on its popular 444-day fixed deposit to 6.5 per cent from 6.6 per cent. The bank has also cut rates on deposits with tenures of two years to less than three years to 6.4 per cent from 6.5 per cent. For sen...