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.
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“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.
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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).