Country’s largest lender State Bank of India has cut the interest rate by 50 basis points on retail short-term deposits (upto 45 days).
Bank also slashed its Marginal Cost of Funds based Lending Rate (MCLR) by 10-15 basis points across all tenors from March 10, 2020.
In view of adequate liquidity in the system, bank in a statement said it has realigned interest rates on Term Deposits with effect from March 10, 2020.
Besides 50 basis points cut, it has reduced rate for one year and above tenors by 10 basis points.
Now, the retail term deposit in one year and above term bucket will carry rate of 5.9 per cent as against 6.0 per cent. The rate on one year deposit are down by 110 basis points since May 2019 when rate was 7.0 per cent.
The deposits in 7-45 days bucket will have rate of 4 per cent rate as against old rate of 4.5 per cent.
For Bulk term deposits, interest rates reduced by 15 bps for deposits in “180 days & above” tenors.
Referring to revision in lending rate, it said this was 10th consecutive cut in MCLR in the current financial year. This would extend the benefits to customers across all segment during the festival season.
One year MCLR to be 7.75 per cent as against previous rate of 7.85 per cent. MCLR is April 2019 was 8.5 per cent.
Consequently, Equated Monthly Instalment (EMI) on eligible home loan accounts (linked to MCLR) will get cheaper by around Rs seven per one lakh on a 30 year loan. EMIs on car loans will also be reduced by Rs 5 per 1 lakh on a seven year loan.