Bank of India, State Bank cut interest rates

The one year MCLR comes down to 7.85% p.a from 7.90% p.a. with effect from 10th February 2020

February 07, 2020 12:41 pm | Updated February 08, 2020 01:15 am IST - Mumbai

.

.

A day after the Reserve Bank of India (RBI) announced measures to ease interest rates, the State Bank of India (SBI) and the Bank of India (BoI) have reduced their lending rates by cutting the marginal cost of fund-based lending rate (MCLR).

The SBI has reduced the MCLR by 5 bps across all maturities. The one-year MCLR will become 7.85% with effect from February 10. 

The country’s largest lender indicated that the lending rates would come down further.

“The impact of the recent RBI policy measures and the reduction in deposit rates will be reflected in the next review of MCLR,” the SBI said.

The BoI, another state-run lender, reduced MCLR by 10 bps for maturities up to 6 months. Additionally, the bank has reduced interest rates on the housing loan, which will now be available from 8.00% and vehicle loan at 8.50%. 

The SBI also lowered the deposit rates, in view of the ‘surplus liquidity’ in the system.

The bank lowered term deposits rates by 10-50 bps in the retail segment (less than ₹2 crore) and 25-50 bps in the bulk segment (₹2 crore and above).

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.