SBI cuts MCLR by 10 basis points, slashes term deposit rates by 20-25 bps

Bank official hints at another round of rate cuts following low credit offtake

The country’s largest lender, State Bank of India (SBI), has cut its key lending rate MCLR by 10 basis points (bps) across all tenors from Tuesday. It also reduced the interest rate on term deposits. 

The one-year marginal cost of funds-based lending rate (MCLR) would come down to 8.15 per cent from 8.25 per cent from September 10. This is the fifth consecutive cut in MCLR in the current financial year (FY 2019-20), the SBI said in a statement. 

A senior SBI executive said while the bank was passing on the cost benefit, the demand for credit is also low. There could