The country's largest lender by assets, State Bank of India or SBI on Wednesday announced reduction in its marginal cost of fund-based lending (MCLR) rate by 10 basis points across all tenors. The new rates will be effective from October 10.
In this financial year, SBI has cut its MCLR or minimum lending rate for the sixth time. However, the rate reduction is not applicable to repo-linked loans.
"In view of the festival season and extending the benefits to customers across all segments, we have reduced our MCLR by 10 bps across all tenors," the bank said in a statement.
With this MCLR will stand reduced to 8.05 per cent for the one-year tenor, as against the existing 8.15 per cent from October 10.
SBI's move to reduce the key lending rate comes after Reserve Bank of India (RBI) cut the repo rate by 25 basis points last week.
SBI has also announced a reduction in interest rates on savings deposits and term deposits or fixed deposits (FDs) across select maturities. On savings deposits, it has announced a revision from 3.5 per cent to 3.25 per cent on balances up to Rs. 1 lakh, which will be effective from November 1, 2019.
SBI has cut interest rates applicable to retail fixed deposits and bulk fixed deposits by 10 and 30 basis points respectively for '1 year to less than 2 years' tenor, effective from October 10, 2019.