SBI, BoB & Andhra Bank lower base rate
The State Bank of India and Bank of Baroda have lowered their Base Rate. SBI has cut base rate by 5 basis points to 8.95%. The new rates will be effective from October 1.
Andhra Bank has reduced base rate to 9.55% from 9.70% while Bank of Baroda has reduced base rate from 9.50% to 9.15%.
More than half of State Bank of India’s borrowers have migrated to marginal cost lending rate or MCLR while a large number of retail borrowers have their home and education loans linked to base rate. None of the bank has announced a reduction in MCLR rates. SBI is slated to review its MCLR rate on in the first week of October. Its MCLR stands at 8% for one year.