SBI cuts FD interest rates second time in a month, reduces MCLR by up to 15 bps; home, auto loans to become cheaper

The country's largest lender State Bank of India (SBI) on Wednesday said it has reduced its marginal cost of fund-based lending rate (MCLR) by up to 15 basis points across various tenors, effective 10 March

FP Staff March 11, 2020 14:10:45 IST
SBI cuts FD interest rates second time in a month, reduces MCLR by up to 15 bps; home, auto loans to become cheaper
  • Making it a second reduction in a month, the public sector bank has reduced retail term deposits (less than Rs 2 crore) by 10 to 50 basis points for a few tenors

  • Further, the one-year marginal cost of fund-based lending rate (MCLR) has been reduced by 10 basis points to 7.75 percent from 7.85 percent earlier, the bank said

  • This is 10th consecutive cut in MCLR by the bank in the current fiscal

The country's largest lender State Bank of India (SBI) on Wednesday said it has reduced its fixed deposit rates for certain tenors and marginal cost of funds-based lending rates (MCLR) across various tenors.

Making it a second reduction in a month, the public sector bank has reduced retail term deposits (less than Rs 2 crore) by 10 to 50 basis points for a few tenors.

Fixed deposits (FDs) maturing between 7 days to 45 days will offer an interest rate of 4 percent as against 4.50 percent earlier.

Interest rates on FDs maturing in one-year and above have been reduced by 10 basis points.

SBI cuts FD interest rates second time in a month reduces MCLR by up to 15 bps home auto loans to become cheaper

One-year to less than two-year tenor FD will earn an interest rate of 5.90 percent against 6 percent earlier.

FD for similar tenor will fetch an interest rate of 6.40 percent instead of 6.50 percent for senior citizens.

The bank has also reduced interest rates on bulk term deposits (Rs 2 crore and above) by 15 basis points for 180 days and above tenors.

FD rates in the bulk category for tenor of one-year and above will earn 4.60 percent instead of 4.75 percent.

In February, the bank had slashed term deposits rates by 10-50 basis points in the retail segment and 25-50 basis points in the bulk segment.

Further, the one-year marginal cost of fund-based lending rate (MCLR) has been reduced by 10 basis points to 7.75 percent from 7.85 percent earlier, the bank said. The move will make home and auto loans cheaper.

This is 10th consecutive cut in MCLR by the bank in the current fiscal.

Overnight and one-month MCLRs have been reduced by 15 basis points to 7.45 percent each. Three-month MCLR has been revised to 7.50 percent from 7.65 percent.

The new two-year and three-year MCLRs stand reduced by 10 basis points to 7.95 percent and 8.05 percent, respectively.

The rates became effective from 10 March.

On Monday, another state-run lender Union Bank of India had announced cut in its MCLR by 10 basis points across all tenors, effective 11 March.

This is the ninth consecutive rate cut announced by the Mumbai-based bank, since July 2019.

The bank has cut its one-year MCLR to 8 percent from 8.10 percent.

The overnight MCLR has been revised to 7.55 percent, while the new one month rate stands at 7.60 percent, the bank had said.

(with PTI inputs)

Updated Date:

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