SBI slashes lending rates by 5 bps

NEW DELHI, 10/08/2012: Despite a general slowdown in the economy, State Bank of India has posted a 137 per cent jump in net profit at Rs 3,751.56 crore in the April-June quarter against Rs 1,583.55 crore in the corresponding year-ago period. Earlier in the day UBS downgraded the bank to "sell" from "buy" saying a weak monsoon would add to its already high bad loans. Photo: V.V. Krishnan

State Bank of India (SBI), the country’s largest lender, reduced its benchmark lending rate by 5 bps across all loan tenures. The lender’s one-year marginal cost of funds based lending rate (MCLR) will be 8.4% compared with 8.45% from Wednesday.

“Interest rates on all loans linked to MCLR stand reduced by 5 bps with effect from 10th July 2019. This is the third rate cut in the current financial year. With today’s MCLR cut, the reduction in the home loan rates since April 10, 2019 is 20 bps,” SBI said.

The move comes after RBI decided to cut its repo rate by 25 bps last month. RBI has reduced the repo rate by 75 bps in 2019.

ICICI Bank had reduced its MCLR 10 bps earlier this month. The one-year MCLR of ICICI Bank is 8.65% while HDFC Bank’s one year MCLR is 8.7%.

Published - July 09, 2019 10:30 pm IST