SBI cuts MCLR by 15 bps, 3-year term deposit rate by 20 bps

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Published: May 8, 2020 6:10:12 AM

Earlier on April 7, the public sector bank announced a reduction in MCLR by 35 bps. and reduced savings deposit rate by 25 bps, citing adequate liquidity in the system.

Citing adequate liquidity in the system, SBI pruned its interest rates on retail term deposits by 20 bps for up to three-year tenor, effective from May 12.Citing adequate liquidity in the system, SBI pruned its interest rates on retail term deposits by 20 bps for up to three-year tenor, effective from May 12.

State Bank of India (SBI) on Thursday reduced its marginal cost of funds-based lending rate (MCLR) by 15 basis points (bps) and three-year retail term deposits by 20 bps, the bank said in a release.

The bank has also introduced a new scheme for senior citizens ‘SBI Wecare Deposit’ in which they will get additional premium over general public.

After the reduction, the one-year MCLR comes down to 7.25% from 7.40% with effect from May 10. “Consequently, equated monthly instalments (EMIs) on eligible home loan accounts linked to MCLR will get cheaper by approximately Rs 255 for a 30-year loan of Rs 25 lakh,” the bank said. This is the 12th consecutive reduction in the bank’s MCLR.

Citing adequate liquidity in the system, SBI pruned its interest rates on retail term deposits by 20 bps for up to three-year tenor, effective from May 12.

The bank has also introduced ‘SBI Wecare Deposit’ for senior citizens in the retail term deposit segment. Under this new product, an additional 30 bps premium will be payable for senior citizen’s retail term deposits with five years and above tenor. This scheme would be in effect up to September 30. Under the new scheme, senior citizens will get 50 bps higher than the rate applicable for the general public for retail term deposits in which tenor is below 5 years.

However, for retail term deposits of five years and above tenor, senior citizens will get 80 bps higher than the rate applicable for the general public. The additional premium will not be payable in case of premature withdrawal of such deposits.

Earlier on April 7, the public sector bank announced a reduction in MCLR by 35 bps. and reduced savings deposit rate by 25 bps, citing adequate liquidity in the system.

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