​​​
  1. State Bank of India cuts lending rate by 0.9 per cent

State Bank of India cuts lending rate by 0.9 per cent

SBI reduced the lending rate by similar percentage point for tenures including one month, three months, six months and two years

By: | Mumbai | Published: January 2, 2017 4:09 AM
State Bank of India (SBI) today slashed its benchmark lending rate by 0.9 per cent across various maturities, effective today. (PTI) State Bank of India (SBI) today slashed its benchmark lending rate by 0.9 per cent across various maturities, effective today. (PTI)

Flush with higher deposits following demonetisation, the country’s largest lender State Bank of India (SBI) today slashed its benchmark lending rate by 0.9 per cent across various maturities, effective today. The bank has reduced marginal cost of funds based lending rate (MCLR) from 8.90 per cent to 8 per cent for 1-year tenure, SBI said in a statement.

The MCLR on overnight borrowings has been reduced to 7.75 per cent from 8.65 per cent, while the lending rate for three-year tenure has been cut from 9.05 per cent to 8.15 per cent.

Similarly, the bank reduced the lending rate by similar percentage point for tenures including one month, three months, six months and two years.

You may also like to watch this video:

“With this, the bank has reduced its benchmark rate by 2 per cent from January, 2015,” it said. Banks have moved to MCLR as their new benchmark lending rate from June, replacing the base rate system for new borrowers.

It is calculated on the marginal cost of borrowing and return on net worth for banks. It was introduced by RBI to ensure fair interest rates to borrowers as well as banks.
Last week SBI’s subsidiary State Bank of Travancore also cut rates by upto 0.3 per cent, while IDBI Bank cut its lending rate by upto 0.6 per cent across various loan tenors.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Go to Top