State Bank of India has cut Marginal Cost of Funds Based Lending Rate (MCLR). The rates have been slashed by 15 bps across a few tenors. The new rates came into effect from March 10.
As per SBI, the interest rate for the one year tenor is now 7.75 per cent as against the earlier 7.85 per cent. For the two year tenor, the MCLR has been dropped to 7.95 per cent from 8.05 per cent and for the three year tenor the rates have been dropped to 8.05 per cent from 8.15 per cent.
As for the overnight and one month tenors, the revised MCLR is 7.45 per cent as against the earlier 7.60 per cent. For the three month tenor, the rate has been reduced to 7.50 per cent from 7.65 per cent, while the rates have been reduced to 7.70 per cent from 7.80 per cent.
Banks are required to change the external benchmark based rate at least once in three months. This change depends on underlying external rate like repo rate. SBI's external benchmark lending rate is linked to RBI's repo rate.
Meanwhile, the SBI has also slashed fixed deposit rates for general customers as well as senior citizens. The new rates have been applicable since March 10. Senior citizens continue to get interest rates at 50 bps higher than general customers.
SBI is the largest commercial bank in India. It also has a market share of 25 per cent each in home loans and auto loans, it stated.