State Bank of India cuts lending, retail deposit rates from Dec 15

NEW DELHI: The State Bank of India (SBI) has announced marginal reductions in key lending benchmarks and select term deposit rates, effective from December 15.

The bank reduced the rate on 2 to less than 3 years tenor to 6.40 percent from 6.45 percent. Senior citizens will receive a 50 bps premium over it, and their rate was cut to 6.90 percent from 6.95 percent. Other retail term deposit slabs were kept unchanged, a statement said.

The changes affect domestic retail term deposits below Rs 3 crore, the Marginal Cost of Funds?based Lending Rate (MCLR), the External Benchmark Linked Rate (EBLR) and the Base Rate.

The bank reduced the popular 444?day "Amrit Vrishti" deposit rate to 6.45 percent from 6.60 percent.

The SBI also eased borrowing costs of home, auto and MSME loans by reducing or Marginal Cost of Funds based Lending Rate (MCLR) rates across all tenors by 5 basis points.

The MCLR rate overnight and one?month was reduced to 7.85 percent, three months to 8.25 percent, six months to 8.60 percent, one year to 8.70 percent, two years to 8.75 percent and three years to 8.80 percent.

Further, the External Benchmark Lending Rate (EBLR) used to price many floating?rate retail loans was lowered by 25 basis points to 7.90 percent from 8.15 percent. The Base Rate or BPLR for a small segment of legacy borrowers was cut to 9.90 percent from 10.00 percent, effective the same day. (IANS)

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