India's largest public sector lender State Bank of India (SBI) has announced that it has cut marginal-cost based lending rates (MCLR) across all tenors by 5 basis points. The new rates that were announced on Friday morning will be applicable from November 10.
After the cut, MCLR for three-year period has come down to 8.20 per cent from 8.25 per cent. One year MCLR has been cut to 8 per cent from 8.05 per cent. For the overnight and one month tenors, MCLR is now 7.65 per cent from 7.70 per cent, while it is 7.70 per cent for the three-month tenor. For six months and two years tenors, MCLR has been brought down to 7.85 per cent and 8.10 per cent from the existing 7.90 per cent and 8.15 per cent respectively.
SBI has also cut interest rates on fixed deposits. The lender said in a press release, "In view of adequate liquidity in the system, SBI revises its interest rates on Term Deposits w.e.f. 10th Nov'2019. Retail TD interest rate reduced by 15bps for '1 year to less than 2 years' tenor. Bulk TD interest rates reduced by 30 to 75 bps across tenors."
The externally benchmarked (repo linked) loan interest rates have been kept unchanged.
On Thursday, private lender HDFC Bank also slashed its MCLR across tenors. According to HDFC Bank, MCLR for 6-month, 1-year and 2-year tenors have been reduced by 5 bps each to 8.10 per cent, 8.30 per cent and 8.40 per cent respectively. The 3-year MCLR has been reduced by 10 bps to 8.50 per cent. Rates for overnight, 1-month and 3-month tenors have been kept unchanged, though. The HDFC base rate has also been reduced 10 bps to 9.20 per cent. The new rates were made effective from November 7.
Also read: HDFC Bank reduces MCLR by up to 10bps