SBI cuts MCLR rate by 10 bps for one-year loan, deposit rates unchanged

This is the eighth cut in MCLR in this financial year and follows a 5 bps reduction last month; most banks have linked their lending rates to repo after introduction of the external benchmark system

The country’s largest lender, State Bank of India, has cut its marginal cost of fund-based lending rate (MCLR) by 10 basis points for loans with a one-year tenure to 7.9 per cent, effective December 10.

This is the eighth consecutive cut in MCLR in the current financial year (2019-2020), SBI said in a statement. Last month it had reduced MCLR by five basis points. The lending rate has been pared to pass on the benefit of its reduced cost of funds to customers, the bank added.

SBI has not changed the interest rate on term deposits for now. In November