SBI reduces base rate, BPLR; leaves MCLR unchanged

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NEW DELHI: The State Bank of India (SBI) on Monday revised a slew of its existing rates, which will be effective from January 1, 2018.

The bank reduced the base rate from 8.95 per cent to 8.65 per cent. It has also revised the Benchmark Prime Lending Rate (BPLR) from 13.70 per cent to 13.40 per cent.

This reduction will benefit nearly 80 lakh customers on the old pricing regime.

The bank, however, did not change the marginal cost of funds-based lending rate (MCLR) which would have brought down the cost for all borrowers. The one-year MCLR of the bank stands unchanged at 7.95 per cent.

"We had done the rate review in the last week of December, and based on whatever deposits rates we had, our base rate was brought down by 30 basis points to 8.65 per cent now," managing director for retail and digital banking, PK Gupta told PTI.

Banks review MCLR on a monthly basis, while the base rate revision happens once a quarter.

"The MCLR was reduced earlier also as the gap between MCLR and base rate had become quite wide. This move will help in reducing that gap," he said.

Gupta further added that the revision will ensure transmission of reduction in the policy rates in the recent past.

The bank also extended its ongoing waiver on home loan processing fees till the end of this March for new home loan customers and other customers looking to switch their existing loans to SBI.