State Bank of India (SBI) on Monday announced a reduction in its marginal cost-based lending rate or MCLR by 10 basis points. It also lowered interest rates on term deposits across all maturities by up to 25 basis points.
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.
From September 10, SBI said its one-year MCLR will be 8.15 per cent per annum.
SBI cut interest rates applicable to retail term deposits by 20-25 bps and bulk term deposits by 10-20 bps across tenors, according to a statement.
SBI said the action was to realign its interest rates on term deposits “in view of the falling interest rate scenario”.
The State Bank of India has about 35 per cent of the market share in home loans and 36 per cent of market share in auto loans.
The Reserve Bank of India had last week asked banks to link their lending rates on floating rate loans to retail, personal and MSME borrowers to an external benchmark from October 1.
SBI Bank latest interest Rates :
Previously, the bank has cut the FD rates twice in the month of August. With effect from August 26, SBI has slashed the FD rates by 10 to 50 bps lower across tenures for retail customers. With effect from September 10, 2019, the one year FD of SBI will be offered at 6.50 per cent.
This is bad news for those looking at FDs as a route for fixed income.