Due to the 10 basis point rate cut across all tenors, the Marginal Cost of Funds based Lending Rate (MCLR) will now come down to 8.15% from 8.25 % from September 10.
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The State Bank of India on Monday announced a reduction in its Marginal Cost of Funds based Lending Rate (MCLR). The country’s largest bank slashed lending rates by 10 basis points (bps) across all tenors.
Interest rates on term deposits across all maturities were also lowered by up to 25 basis points. Due to this rate cut, the MCLR will now come down to 8.15% from 8.25 % from September 10. The lender said that the action was taken to realign its interest rates on term deposits “in view of the falling interest rate scenario”.
This is the fifth time that the bank has moved for a reduction in the MCLR and comes just weeks after it cut repo rates, the key interest rate at which it lends short-term funds to commercial banks, by 1.1 percentage point.
Other banks like the Central Bank of India, Axis Bank, Oriental Bank of Commerce, IDBI Bank and IDFC Bank have been cutting rates on loans and reducing rates. The Reserve Bank of India (RBI) has cut the repo rate by a total of 110 bps this year.
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