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SBI cuts lending rates by 10 bps; home loans to go cheaper

Public sector lender State Bank on Monday announced yet another reduction in lending rates by 10 basis points across tenors.

India TV Business Desk India TV Business Desk
Mumbai Updated on: September 09, 2019 11:55 IST
SBI again cuts interest rates by 10 bps on home loans,

SBI again cuts interest rates by 10 bps on home loans, fixed deposits; effective from tomorrow

Public sector lender State Bank on Monday announced yet another reduction in lending rates by 10 basis points across tenors. The new rates are effective Tuesday, the lender said announcing the third rate reduction in the current fiscal year.

In a press release, SBI stated that it will reduce reduced MCLR (marginal cost of lending rate)s rates by 10 basis points (bps) across all tenors with effect from tomorrow, i.e., September 10. (1 basis point = 0.01%). Due to this rate cut, the one-year MCLR SBI MCLR rate today has come down to 8.15 percent a year from 8.25 percent. This is SBI's fifth consecutive cut in MCLR in FY 2019-20.

SBI MCLR rates w.e.f September 10

Tenor Existing MCLR (In %) Revised MCLR (In %)
Over night 7.9 7.8
One Month 7.9 7.8
Three Month 7.95 7.85
Six Month 8.1 8
One Year 8.25 8.15
Two Years 8.35 8.25
Three Years 8.45 8.35

SBI has announced a further cut in fixed deposit interest rates. The public sector bank has slashed the retail FD rates by 20-25 bps across all tenors, effective Tuesday.

SBI FD rates w.e.f September 10

Tenors Existing for Public w.e.f. 26.08.2019 (In %) Revised For Public w.e.f. 10.09.2019 (In %)
7 days to 45 days 4.50 4.50
46 days to 179 days 5.50 5.50
180 days to 210 days 6.00 5.80
211 days to less than 1 year 6.00 5.80
1 year to less than 2 year 6.70 6.50
2 years to less than 3 years 6.50 6.25
3 years to less than 5 years 6.25 6.25
5 years and up to 10 years 6.25 6.25

SBI FD rates for senior citizens w.e.f September 10

Tenors Existing for Senior Citizens w.e.f. 26.08.2019 Revised for Senior Citizens w.e.f. 10.09.2019
7 days to 45 days 5.00 5.00
46 days to 179 days 6.00 6.00
180 days to 210 days 6.50 6.30
211 days to less than 1 year 6.50 6.30
1 year to less than 2 year 7.20 7.00
2 years to less than 3 years 7.00 6.75
3 years to less than 5 years 6.75 6.75
5 years and up to 10 years 6.75 6.75

The lender attributed the falling interest rate scenario and surplus liquidity for realigning its interest rate on term deposits.

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