SBI cuts loan rates by 5 bps: 5 things you must know
Country's largest public sector lender State Bank of India has followed its smaller peers to cut the lending rates by 5 basis points across all tenors with effect from April 10. This is the bank's first rate cut announcement since November 2017. The reduction in lending rate by the bank follows a cumulative 50 basis points cut in repo rate by the RBI in its last two monetary policy review meeting.
SBI's new one-year marginal cost of funds-based lending rate (MCLR) is now down to 8.50 percent from 8.55 percent earlier. This is the first reduction in MCLR by SBI in the last 17 months. (Reuters)
The SBI has also re-priced home loans up to Rs 30 lakh by 10 bps. Accordingly, interest rate on housing loans of such ticket size will now be in the range of 8.60-8.90 percent now, down from 8.70-9 percent. (Reuters)
SBI is the third state-run lender to lower the lending rates after Indian Overseas Bank Tuesday and Bank of Maharashtra which also lowered their loan prices by 5 bps on loan tenors of one year and above, effective April 10. (Reuters)
While IOB said it has cut MCLR for one-year loans to 8.65 percent from 8.70 percent earlier, BoM had on April 5, a day after the RBI action, had cut MCLR rates by 5 basis points across various tenors. The Pune-based BoM had reduced its one-year lending to 8.70 percent from 8.75 per cent. (PTI)
Last month SBI was first to link its short-term loans and large savings deposits rates to the repo rate from May 1. For balances up to Rs 1 lakh, the savings bank rates would be 3.50 percent, while for balances above Rs 1 lakh effective rate would be 3.25 percent. The bank had linked all cash credit accounts and overdrafts with limits above Rs 1 lakh to the repo rate plus a spread of 2.25 percent. (Reuters)