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SBI to link home loans to repo rate from July, cuts interest rates on CC/OD

t was the third consecutive repo rate cut by RBI, with cumulative reduction of 75 basis points in 2019, so far

Press Trust of India  |  Mumbai 

SBI

After linking its short-term and large savings deposits rates to the repo rate, the largest lender Friday said it will introduce repo-linked home from July.

The lender has also reduced interest rate on cash credit account (CC) and overdraft (OD) customers with limits above Rs 1 lakh, after the RBI reduced the by 25 basis points Thursday.

"We will introduce repo-linked home from July 1," SBI said in a late evening statement.

The committee had unanimously decided to reduced by 25 basis points to 5.75 percent in the second bi-monthly policy Thursday, taking it down to a nine- year low, citing sagging growth and to cushion the rising headwinds to the

It was the third consecutive cut by RBI, with cumulative reduction of 75 basis points in 2019, so far.

"The benefit of reduction in the repo rate by 25 bps has been passed in its entirety to our CC/OD customers (limits above Rs 1 lakh), with effect from July 1," SBI said.

The effective repo-linked lending rate (RLLR) for CC/ OD customers is 8 percent now, it said, while for savings deposits above Rs 1 lakh the new rate would be 3 percent.

In March, the had linked all CC accounts and ODs with limits above Rs 1 lakh to the repo rate plus a spread of 2.25 percent. For above Rs 1 lakh, it had set its savings deposit rates to 2.75 percent below the repo rate.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, June 07 2019. 21:10 IST
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