SBI cuts key lending rate by 0.05 per cent
State Bank of India (SBI) has cut its benchmark lending rate by 0.05 per cent across maturities, effective from Wednesday, according to an announcement by the state-run lender. The reduction in marginal cost of funds based lending rate (MCLR) by the largest Indian bank, last made on January 1 this year, and has thus brought its MCLR down to 7.95 per cent from 8 per cent, the SBI website said.
The MCLR on overnight borrowings has been reduced to 7.70 per cent from 7.75 per cent, while the rate for three-year tenures has been lowered from 8.15 per cent to 8.10 per cent.
On Tuesday, another public sector lender, the Kolkata-headquartered Allahabad Bank reduced their MCLR rate by 0.15 per cent across maturities. The reduction has brought down the one-year MCLR to 8.30 per cent, as against 8.45 per cent, effective November 1.
At its fourth bi-month monetary policy review here earlier in the month, the Reserve Bank of India kept its key interest rate unchanged at 6 per cent, reiterating its call for better transmission by the banks of earlier rate cuts made by the central bank.