Government-owned State Bank on Monday announced it had decided to reduce its lending rates by 10 basis points across tenors. The new rates will be effective from Tuesday (tomorrow). This is the third rate reduction by India’s biggest public sector lender.
One year Marginal Cost of Funds based Lending Rate (MCLR), to which all the retail lending rates are linked to, has been reduced to 8.15 percent from 8.25 percent earlier, reported news agency PTI. SBI brought down retail term deposit rates by 20-25 bps and bulk term deposit rates by 10-20 bps across tenors.
“In view of the falling interest rate scenario and surplus liquidity, SBI also realigns its interest rate on term deposits (TD) w.e.f. September 10. Bank slashes retail TD rates by 20-25 bps and bulk TD rates by 10-20 bps across tenors,” Livemint quoted SBI as saying.
SBI also reduced its interest rates on Fixed Deposits by 20-25 basis points. The latest reduction is the second by SBI in a fortnight. The rates for FDs maturing in seven to 45 days remains unchanged at 4.5%. However, those FDs maturing in 180 days to less than 1 year will fetch an interest rate of 5.8%, reported News18. For FDs maturing in 2 years to less than 3 years, SBI will give an interest rate of 6.25%.