SBI links deposit, loan interest to repo rates

In savings account with deposits balances above Rs 1 lakh, the effective interest rate will be 2.75% below repo rate, which is currently at 6.25%. With this, effective interest rate in savings account works out to be 3.5%, which is unchanged at present.

All cash credit accounts and overdrafts above Rs 1 lakh would be priced at 2.25% over the repo rate. So, at current repo rate of 6.25%, this comes to floor rate of 8.5% for the bank. On this floor rate, the bank will charge a risk premium based on the risk profile of the borrower.