Small deposits, loans will continue to be MCLR based, says Rajnish Kumar

From May 1, the savings bank deposits with balance above Rs 1 lakh will earn an interest of 3.5 per cent, 2.75 per cent lower than the repo rate and lower amounts in balance will earn 4 per cent

A day after State Bank decided to link its short-term loans and large savings deposits rates to the repo rate, chairman Rajnish Kumar Saturday said loans and deposits below Rs 1 lakh will continue to be linked to the present MCLR to protect retail customers from market vagaries.

In a first, the nations largest lender had Friday said from May 1, it would link its savings accounts with deposits over Rs 1 lakh and all cash credit accounts and overdrafts or short term loans with limits above Rs 1 lakh or short-term loans, to the repo rate, which currently is at