SBI again cuts lending rates by 10 bps ahead of festivals, new rates effective from tomorrow
Public sector lender State Bank on Monday announced yet another reduction in lending rates by 10 basis points across tenors
One year MCLR, to which all the retail lending rates are linked to, has been reduced to 8.15 percent from 8.25 percent earlier
It also slashed retail term deposit rates by 20-25 bps and bulk term deposit rates by 10-20 bps across tenors, effective Tuesday
The lender attributed the falling interest rate scenario and surplus liquidity for realigning its interest rate on term deposits
Mumbai: To cash in on the forthcoming festive seasons and to better utilise the excess liquidity, State Bank announced the fifth-rate cuts on Monday by another 10 basis points across tenors, effective Tuesday.
With this lending rate reduction, the bank has lowered 40 bps so far this fiscal year in five successive rate cuts beginning April.
The new rates are effective Tuesday, the nation's largest lender said in a statement.
State Bank of India cuts lending rate by 10 bps across all tenors w.e.f Sep 10. The co also cuts 1-yr MCLR to 8.15% from 8.25% pic.twitter.com/8zS3yzpL2v
— CNBC-TV18 (@CNBCTV18Live) September 9, 2019
Accordingly, the one-year marginal cost-based lending rate--to which all its retail lending rates are linked, is down to 8.15 percent from 8.25 percent earlier- which is the lowest in the industry now.
The bank, which has linked almost all its loan and deposit products to the repo rate, has also slashed its retail term deposit rates by a higher 20-25 bps and bulk term deposit rates by 10-20 bps across tenors, effective Tuesday.
The lender attributed the falling interest rate scenario and surplus liquidity for realigning its loan and deposit pricing.
In April when it had slashed the first time by 5 bps, its one-year MCLR was at 8.55 percent. Similar cuts were effected in May and July, while it went in for for a higher 15 bps reduction in August, yanking down the benchmark rate to 8.25 percent. And with the latest cut, it's down to a multi-year low of 8.15 percent--the lowest in the industry.
Its nearest rivals HDFC Bank and ICICI Bank offer 8.30 and 8.35 percent respectively after their 10 bps reduction in the past two weeks.
However, it can be noted that lending rates are still much higher than the RBI's benchmark rate of 5.40 percent--which is at a nine-year low after in four successive moves, the central bank cut the repo rates by a cumulative 110 bps since February.
The popular National Electronic Funds Transfer or NEFT for fund transfers of up to Rs 2 lakh will continue to be operational as usual during this period
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