SBI Cuts MCLR By 5 Basis Points On Loans Of All Tenors
SBI’s one-year MCLR has come down to 8.45 percent per annum from 8.5 percent.(Photographer: Dhiraj Singh/Bloomberg)

SBI Cuts MCLR By 5 Basis Points On Loans Of All Tenors

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State Bank of India has cut its marginal cost-based lending rate by 5 basis points on loans of all tenors. With this cut, one-year MCLR has come down to 8.45 percent per annum from 8.5 percent.

“As a result, interest rates on all loans linked to MCLR stand reduced by 5 basis points with effect from May 10, 2019,” SBI said in a release. This is the second interest rate cut by the bank in the last one month. After the Reserve Bank of India’s April Monetary Policy, the MCLR was reduced by 5 basis points.

Taking into account Friday's MCLR cut, the reduction in home loan rates since April 10, 2019, has been 15 basis points, SBI said.

SBI has linked its cash credit/over draft rates above Rs 1 lakh to the RBI repo rate from May 1 for better transmission of policy rates.

SBI also declared its Q4 results on Friday. Its profit missed estimates for the three-month ended March as provisions stood at Rs 16,500 crore. “It looks like they have front-loaded their provisions and that has resulted in the net income missing the estimate,” Rati Pandit, analyst at Sunidhi Securities & Finance Ltd. told Bloomberg.

SBI shares rose 2.94 percent to Rs 308.05 apiece on the BSE after announcement of Q4 results. The benchmark index Sensex shed 0.26 percent to end the day at 37,462.99 points, capping its weakest week in seven months.

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