SBI cuts fixed deposit, lending rates

PTI, Mar 11, 2020, 2:29 PM IST

Mumbai: The country’s largest lender State Bank of India (SBI) on Wednesday, March 11 said that it has reduced its fixed deposit rates for certain tenors and the marginal cost of funds-based lending rates (MCLR) across various tenors.

Making it the second reduction in a month, the public sector bank has reduced retail term deposits (less than Rs 2 crore) by 10 to 50 basis points for a few tenors.

Fixed deposits (FDs) maturing between 7 days to 45 days will offer an interest rate of 4.50 percent as against 4 percent earlier. Interest rates on FDs maturing in one-year and above have been reduced by 10 basis points.

One-year to less than two-year tenor FD will earn an interest rate of 5.90 percent against 6 percent earlier. FD for similar tenor will fetch an interest rate of 6.40 percent instead of 6.50 percent for senior citizens.

The bank has also reduced interest rates on bulk term deposits (Rs 2 crore and above) by 15 basis points for 180 days and above tenors.

FD rates in the bulk category for the tenor of one year and above will earn 4.60 percent instead of 4.75 percent.

In February, the bank had slashed term deposits rates by 10-50 basis points in the retail segment and 25-50 basis points in the bulk segment.

Further, the one-year marginal cost of fund-based lending rate (MCLR) has been reduced by 10 basis points to 7.75 percent from 7.85 percent earlier, the bank said.

This is the 10th consecutive cut in MCLR by the bank in the current fiscal.

Overnight and one-month MCLRs have been reduced by 15 basis points to 7.45 percent each. Three-month MCLR has been revised to 7.50 percent from 7.65 percent.

The new two-year and three-year MCLRs stand reduced by 10 basis points to 7.95 percent and 8.05 percent, respectively.

The rates became effective from March 10. On Monday, another state-run lender Union Bank of India had announced cut in its MCLR by 10 basis points across all tenors, effective March 11.

This is the ninth consecutive rate cut announced by the Mumbai-based bank, since July 2019.

The bank has cut its one-year MCLR to 8 percent from 8.10 percent. The overnight MCLR has been revised to 7.55 percent, while the new one month rate stands at 7.60 percent, the bank had said.