SBI Cuts MCLR-Based Lending Rates By 5 Basis Points Across Tenors
A pedestrian uses a smartphone while standing across a State Bank of India Ltd. (SBI) branch in Bengaluru, India. (Photographer: Karen Dias/Bloomberg)

SBI Cuts MCLR-Based Lending Rates By 5 Basis Points Across Tenors

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The country's largest lender State Bank of India on Friday announced a 5 basis points reduction in its marginal cost of fund-based lending rates across tenors from Feb. 10.

This is the ninth consecutive cut in MCLR by the bank in the current fiscal.

With this reduction, the one-year MCLR has come down to 7.85 percent per annum from 7.90 percent, the bank said in a statement.

The reduction in MCLR by the bank comes a day after the Reserve Bank of India left the repo rates unchanged at 5.15 percent but announced long-term repo operation for up to Rs 1 lakh crore, making cost of funds cheaper for banks.

Also read: RBI’s Long-Term Repo Operations Seen As Stealth Move To Bring Down Rates

SBI further said in view of surplus liquidity in the system, it has realigned its interest rate on retail term deposits (less than Rs 2 crore) and bulk term deposits (Rs 2 crore and above), effective Feb. 10.

It slashed term deposits rates by 10-50 bps in the retail segment and 25-50 bps in the bulk segment.

“The impact of recent RBI policy measures and reduction in deposit rates will be reflected in the next review of MCLR,” the bank said.

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