New Delhi: India's largest lender State Bank of India (SBI) announced reduction in its home loan interest rates across all tenors by reducing the MCLR by 10 bps across all tenors.
The 1 year MCLR would come down to 8.15 percent p.a from 8.25 percent p.a. with effect from September 10, 2019. This is the fifth consecutive cut in MCLR in FY 2019-20.
In view of the falling interest rate scenario and surplus liquidity, SBI has also realigned its interest rate on term deposits (TD) with effect from September 10. The Bank slasheed retail TD rates by 20-25 bps and bulk TD rates by 10-20 bps across tenors.
In August, SBI had announced a reduction of 15 basis points in its MCLR across all tenors. The revised rates will be was effective from August 10. The Bank said that the one year MCLR would come down to 8.25 percent per annum from 8.40 percent.
The announcement had come just hours after Reserve Bank of India (RBI) cut the benchmark lending rates in its third bi-monthly monetary policy.
The six-member Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das announced reduction of repo rates by 35 basis points to 5.40 percent in its third bi-monthly monetary policy of 2019-20.
The repo rate under the liquidity adjustment facility (LAF) was reduced by 0.35 basis points to 5.40 percent from 5.75 percent with immediate effect. Consequently, the reverse repo rate under the LAF was adjusted to 5.15 percent, the marginal standing facility (MSF) rate and the Bank Rate to 5.65 percent and the CRR rates remain at 4 percent.