State Bank of India (SBI) has cut its marginal cost-based lending rate (MCLR) by 5 basis points on loans of all tenors. The lender has also revised interest rates on its fixed deposits below Rs 2 crore, according to the bank's website.
The new FD rates came into effect from May 9, 2019. The bank has revised its marginal cost of funds based lending rate (MCLR) with effect from - May 10, 2019. The revised lending rate for overnight stands at 8.10 per cent compared to the earlier 8.15%.
For one month tenure, the rate now stands at 8.10% compared to the earlier 8.15%. Interest rate of loan for three month tenure stands at 8.15% compared to the earlier 8.20%.
With this cut, 1-year MCLR has come down to 8.45 per cent per annum from 8.5 per cent. "As a result, interest rates on all loans linked to MCLR stand reduced by 5 bps with effect from May 10, 2019," SBI said.
This is the second rate cut by the bank in the last one month. After the RBI's April Monetary Policy, the MCLR was reduced by 5 bps. Taking into account Friday's MCLR cut, the reduction in home loan rates since April 10, 2019, has been 15 bps, the bank added.
FD RATES REVISED
Interest rate on its one-year to two-year fixed deposits has been revised to 7 percent from 6.8 percent, according to the bank's website.
Interest rates on term deposits with tenors of two to three year has been reduced by 5 bps, three to five year by 10 bps, and five to 10 years by 15 bps.
On the other hand, rates for shorter duration deposits that are up to one year have been kept unchanged. The bank announced savings bank interest rates for balances above Rs 1 lakh on May 1, 2019.
The rate stands 2.75% below RBI's repo rate, the lender's website says. Hence, savings bank interest rate for balances above Rs 1 lakh stands at 3.25%. Repo rate is the rate at which RBI lends to banks. Repo rate of RBI stands at 6%.
Edited by Aseem Thapliyal