SBI cuts MCLR by 5 bps across tenors

The country's largest lender State Bank of India (SBI) on Friday announced a 5 basis points reduction in its MCLR across tenors, effective February 10.

This is the ninthconsecutive cut in MCLR by the bank in the current fiscal.

With this reduction, the one-year marginal cost of fund-based rate (MCLR) has come down to 7.85 per cent per annum from 7.90 per cent, a bank statement said.

The reduction in MCLR by the bank comes a day after the Reserve Bank of India (RBI) left the repo rates unchanged at 5.15 per cent but announced long-term repo operation for up to Rs 1 lakh crore, making cost of funds cheaper for banks.

SBI further said in view of surplus liquidity in the system, it hasrealigned its interest rate on retail term deposits (less than Rs 2 crore) and bulk term deposits (Rs 2 crore and above), effective February 10.

Itslashed term deposits rates by 10-50 bps in the retail segment and 25-50 bps in the bulk segment.

"The impact of recent RBI policy measures and reduction in deposit rates will be reflected in the next review of MCLR," the bank said.