Mumbai, September 9
To cash in on the forthcoming festive season and to better utilise the excess liquidity, SBI today announced the fifth rate cuts on Monday by another 10 basis points across tenors, effective Tuesday.
With this lending rate reduction, the bank has lowered 40 bps so far this fiscal in five successive rate cuts beginning April.
The new rates are effective Tuesday, the nation’s largest lender said.
Accordingly, the one-year marginal cost-based lending rate — to which all its retail lending rates are linked, is down to 8.15% from 8.25% earlier — which is the lowest in the industry now.
The bank, which has linked almost all its loan and deposit products to the repo rate, has also slashed its retail term deposit rates by a higher 20-25 bps and bulk term deposit rates by 10-20 bps across tenors, effective Tuesday.
The lender attributed the falling interest rate scenario and surplus liquidity for realigning its loan and deposit pricing.
In April when it had slashed the first time by 5 bps, its one-year MCLR was at 8.55%. Similar cuts were effected in May and July, while it went in for a higher 15 bps reduction in August, yanking down the benchmark rate to 8.25%. And with the latest cut, it’s down to a multi-year low of 8.15% — the lowest in the industry.
Its nearest rivals HDFC Bank and ICICI Bank offer 8.30 and 8.35%, respectively, after their 10 bps reduction in the past two weeks. — PTI
Also lowers term deposit rates
- The bank has lowered 40 bps so far this fiscal in five successive rate cuts beginning April
- The one-year marginal cost-based lending rate — to which all its retail lending rates are linked, is down to 8.15% from 8.25% earlier — which is the lowest in the industry
- It has also cut its retail term deposit rates by 20-25 bps and bulk term deposit rates by 10-20 bps across tenors
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