State Bank of India lowered its lending rates by 5 basis points across all tenors, yesterday. It has also sharply slashed the deposits pricing between 15 and 75 basis points. It will be effective from 10th of November. This is the seventh consecutive cut in lending rates by the bank this fiscal.
The SBI said, with this reduction, the one-year Marginal Cost Of Funds-Based Lending (MCLR), to which most of its loan prices are linked, will come down to 8 per cent.
The bank also reduced interest rate on retail term deposit by 15 basis points for one year to less than two years’ tenor. The bulk term deposit interest rates have been reduced by 30 to 75 basis points across tenors.