SBI cuts MCLR by 5 bps across all tenors; reduces FD rates as well

India’s largest public sector lender, State Bank of India (SBI), announced Friday morning that it has cut marginal-cost based lending rates (MCLR) by 5 basis points across all tenors. The new rates will be effective from November 10. After the cut, the one-year MCLR stands at 8 percent. According to SBI’s press release, this is the bank’s seventh consecutive MCLR cut during the current financial year. SBI last cut its MCLR in October where it reduced rates by 10 bps across all tenors.

SBI has also cut interest rates on fixed deposits (FDs). “In view of adequate liquidity in the system, SBI revises its interest rates on Term Deposits w.e.f. 10th Nov’ 2019. Retail TD interest rate reduced by 15 bps for ‘1 Year to less than 2 years’ tenor. Bulk TD interest rates reduced by 30 to 75 bps across tenors,” stated the press release.

The bank has kept interest rates on its externally benchmarked (repo linked) loans unchanged.

Tenor-wise MCLRs effective from 10th Noeveber, 2019 will be as mentioned below
Source: SBI wesbite

Yesterday, HDFC Bank, the country’s largest private sector lender cut its MCLR on loans by up to 10 bps. According to the bank’s website, it has cut the 6-month MCLR by 5 bps to 8.1 percent, 1-year rate by 5 bps to 8.3 percent, 2-year by 5 bps to 8.4 percent, and the 3-year rate by 10 bps to 8.5 percent. These new rates will be effective from November 7.