SBI Cuts Lending Rates, Int On Fixed Deposits Sharply
New Delhi: Country’s largest lender State Bank of India (SBI) has cut the lending rates as well as the interest rates on fixed deposits sharply. The bank has cut the lending rates by 75 basis points and the interest rates on deposits by 20-100 basis points.
The move by SBI comes soon after the Reserve Bank of India slashed the Repo Rate by 75 basis points in one go in an unprecedented move. The central bank also cut the Reverse Repo Rate by 90 basis points and the Cash Reserve Ratio by 100 basis points.
“The bank (SBI) passes on the entire 75 basis points (bps) repo rate cut to its borrowers availing loans linked to external benchmark-linked lending rate (EBR) as well as repo-linked lending rate (RLLR)," SBI said in a statement.
The EBR has been cut to 7.05 percent per annum from 7.80 per annum earlier. Similarly, RLLR has been slashed to 6.65 percent per annum from 7.40 per annum earlier.
The reduction in marginal cost of lending-based rate (MCLR) will be decided next month in the bank's Asset-Liability Committee meeting, SBI said.