Advertisement
Wednesday, Oct 27, 2021
Outlook.com
Outlook.com

SBI Cuts Lending Rates By 10 bps, New Rates Effective From Tuesday

However, it can be noted that lending rates are still much higher than the RBI's benchmark rate of 5.40 percent-- which is at a nine-year low

SBI Cuts Lending Rates By 10 bps, New Rates Effective From Tuesday
| File Photo
SBI Cuts Lending Rates By 10 bps, New Rates Effective From Tuesday
outlookindia.com
2019-09-09T14:06:21+05:30

To cash in on the forthcoming festive seasons and to better utilise the excess liquidity, State Bank announced the fifth rate cuts on Monday by another 10 basis points across tenors, effective Tuesday.

With this lending rate reduction, the bank has lowered 40 bps so far this fiscal year in five successive rate cuts beginning April.

The new rates are effective Tuesday, the nation's largest lender said in a statement.

Accordingly, the one-year marginal cost-based lending rate--to which all its retail lending rates are linked, is down to 8.15 percent from 8.25 percent earlier- which is the lowest in the industry now.

The bank, which has linked almost all its loan and deposit products to the repo rate, has also slashed its retail term deposit rates by a higher 20-25 bps and bulk term deposit rates by 10-20 bps across tenors, effective Tuesday.

The lender attributed the falling interest rate scenario and surplus liquidity for realigning its loan and deposit pricing.

In April when it had slashed the first time by 5 bps, its one-year MCLR was at 8.55 percent. Similar cuts were effected in May and July, while it went in for for a higher 15 bps reduction in August, yanking down the benchmark rate to 8.25 percent. And with the latest cut, it's down to a multi-year low of 8.15 percent--the lowest in the industry.

Its nearest rivals HDFC Bank and ICICI Bank offer 8.30 and 8.35 percent respectively after their 10 bps reduction in the past two weeks.

However, it can be noted that lending rates are still much higher than the RBI's benchmark rate of 5.40 percent-- which is at a nine-year low after in four successive moves, the central bank cut the repo rates by a cumulative 110 bps since February.

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

Bombay High Court Adjourns Aryan Khan's Bail Application Till Tomorrow

Bombay High Court Adjourns Aryan Khan's Bail Application Till Tomorrow

Former Attorney General of India (AGI) Mukul Rohatgi appeared for Shah Rukh Khan’s son Aryan Khan, along with his existing legal counsel comprising Satish Manishinde and Amit Desai.

Explainer | Why A Lawyer Is Seeking FIR Against NCB's Wankhede For 'Extortion' In Aryan Khan Drugs Case

Explainer | Why A Lawyer Is Seeking FIR Against NCB's Wankhede For 'Extortion' In Aryan Khan Drugs Case

On Monday, a lawyer approached the Mumbai police with a complaint seeking registration of an FIR against Sameer Wankhede and five others for extortion in the drugs-on-cruise case.

IPL Controversy: CVC Capital Under BCCI Scanner

IPL Controversy: CVC Capital Under BCCI Scanner

The BCCI on Monday named RPSG Ventures Limited and Irelia Company Pte Ltd. (CVC Capital Partners) as owners of the new IPL teams from 2022.

'TMC & AAP On A Mission To Split Congress Votes And Help BJP In Goa': State Congress Chief

'TMC & AAP On A Mission To Split Congress Votes And Help BJP In Goa': State Congress Chief

Goa Congress president Girish Chodankar strongly asserted that the voters cannot be wooed with false promises and money as people are deeply rooted in the Congress.

Advertisement