Country’s largest lender State Bank of India (SBI) on Monday announced a reduction in its marginal cost-based lending rate or MCLR by 10 basis points across all tenors and has also reduced rates on term deposits.
It also lowered interest rates on fixed term deposits across all maturities by up to 25 basis points, the bank said.
The one year MCLR based lending rate will come down to 8.15 per cent after the rate cut.
The move is the fifth consecutive reduction in MCLR by the lender so far this financial year.
The cut in interest rates comes on the back of the Reserve Bank of India (RBI)’s 1.1 percentage point reduction in the repo rate – the key interest rate at which it lends short-term funds to commercial banks – so far this year.
The new rates are effective from September 10.
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